Battle For First Bank Intensifies As Otudeko Becomes Largest Shareholder

Oba Otudeko’s Honeywell Group last Thursday bought 4,770,269,843 shares of the firm in a cross deal worth N87.8 billion intensifying the battle for the control of First Bank of Nigeria Holdings Plc.

According to ThisDay, these shares which Otudeko bought at N19 per unit are the largest volume of First Bank shares traded in a single day since 2012, when the stock exchange started publishing data.

The acquisitions take his shareholding to 14 percent of the bank’s outstanding market value.

A “disclosure of shareholding” sent to the Company Secretary, FBN Holdings Plc and dated July 7, 2023, by Honeywell Group Limited stated: “We write on behalf of Barbican Capital Limited, an affiliate of Honeywell Group Limited and refer to the provisions of Sections 119 and 120 of the Companies and Allied Matters Act 2020 (as amended).

“In addition to the previously disclosed interests by Honeywell Group Limited’s affiliates, kindly take this as notification that, as at 7th July 2023, Barbican Capital Limited has acquired an aggregate of 4,770,269,843 shares in FBN Holdings Plc. Kindly accept the assurances of our highest regards. Yours faithfully, Yewande Giwa Head, Governance & Sustainability.”

Also, FBN Holdings Plc acknowledged Honeywell Group Limited’s acquisitions. In a letter signed by Adewale Arogundade, Acting Company Secretary, it stated: “This is to inform the public and our stakeholders that the Company received a notification dated July 7, 2023 from Honeywell Group Limited that its affiliate, Barbican Capital Limited has acquired an aggregate of 4,770,269,843 units of shares from the Company’s issued share capital of 35,895,292,791, as at the above referenced date. Based on the foregoing, the equity stake of Barbican Capital Limited in the Company is 13.3%.”

Recall that Otudeko, who was chairman of First Bank until 2019, is making a swift comeback to become the single largest shareholder of the bank.

Billionaire Femi Otedola became the bank’s single largest shareholder in 2021 after a tussle with Hassan Odukale who was also vying for control of the bank after a leadership gap emerged from Otudeko’s exit.

“Otudeko is flush with cash from the sale of Honeywell and is buying back the bank’s shares through entities linked to him,” a source familiar with the matter said.

With Otudeko now leading the battle for the control of First Bank of Nigeria Holdings Plc with 14 percent shareholding, Otedola drops to second with nine percent shareholding. Hassan Odukale and Mike Adenuga are joint third, each with seven percent shareholding. Saheed Arisekole is fourth with five percent shareholding.