Billionaire investor and Chairman of First HoldCo Plc, Femi Otedola, has moved closer to triggering Nigeria’s mandatory takeover rules after acquiring an additional 1.779 billion ordinary shares worth N222.2 billion, increasing his stake in the financial services group to 25.87 per cent.
A regulatory filing submitted to the Nigerian Exchange on Thursday showed that the latest acquisition, executed through Calvados Global Services Limited at N124.90 per share, increased Otedola’s beneficial ownership to 11.76 billion shares from 21.96 per cent previously.
The purchase marks Otedola’s second major share acquisition in eight days. Combined with the 706.13 million shares valued at N77.59 billion bought on July 22, he has invested nearly N300 billion in fresh equity in First HoldCo within just over a week, further consolidating his position as the company’s largest shareholder.
The latest transaction has heightened market attention because it brings Otedola within striking distance of Nigeria’s mandatory takeover threshold.
Under the Investments and Securities Act (ISA) 2025 and the Securities and Exchange Commission’s Rules on Mergers, Takeovers and Acquisitions, any investor who acquires 30 per cent or more of the voting shares of a listed company is required to make a Mandatory Takeover Offer (MTO) to the remaining shareholders, unless granted a regulatory exemption.
With his holding now at 25.87 per cent, Otedola remains below the statutory trigger. However, analysts say any further significant share purchases could push him above the 30 per cent threshold, compelling him to offer to buy the shares of minority investors under SEC regulations.
The development has fuelled speculation over Otedola’s long-term intentions for First HoldCo and whether he ultimately plans to assume greater control of Nigeria’s oldest financial institution.
Based on Thursday’s acquisition price, Otedola’s 11.76 billion-share stake is now valued at about N1.47 trillion, making it one of the largest individual equity holdings in Nigeria’s banking industry.
His aggressive accumulation comes amid a sharp rally in First HoldCo’s share price, driven by stronger earnings, improved corporate governance and renewed investor confidence.
The stock has more than doubled in value over the past month, propelling First HoldCo ahead of Zenith Bank to become the Nigerian Exchange’s most valuable banking stock by market capitalisation.
The re-rating also reflects a broader shift in investor sentiment towards Nigerian banks as stronger profitability, improved capital positions and governance reforms narrow the long-standing valuation discount at which many banking stocks have traded.
First HoldCo now trades at about 1.7 times its book value while delivering an annualised return on average equity of roughly 30 per cent, placing it closer to leading African banking peers in terms of valuation metrics. As Otedola edges closer to the 30 per cent ownership threshold, investors are expected to watch closely for any further share purchases that could trigger one of the country’s most significant mandatory takeover processes in recent years.
