Otudeko Bows Out: N323bn Block Deal Shakes Up First Holdco Ownership
In a seismic shift within Nigeria’s oldest banking group, First Holdco Plc, billionaire businessman Oba Otudeko has exited his long-held stake in the institution through a massive N323.33 billion block trade.
The deal, executed on the Nigerian Exchange (NGX), involved the transfer of 10.43 billion ordinary shares — representing approximately 25 per cent of the banking group’s total shareholding — at an average price of N31 per share. The negotiated off-market transaction is one of the largest single-day equity trades in recent Nigerian financial history.
“This is a well-known issue around the market that it would happen,” a senior investment banker and multiple-asset stockbroker told The Nation. “It’s a new beginning for the group.”
The exit of the Otudekos marks the end of a long-standing chapter in First Holdco’s corporate history. Otudeko, a key figure in the bank’s evolution over the decades, had been enmeshed in an increasingly public battle for influence with other major shareholders, including billionaire businessman Femi Otedola and seasoned insurance executive Tunde Hassan-Odukale.
While the identity of the buyer remained undisclosed at the close of business, regulatory guidelines provide a grace period for full disclosure and documentation of such ownership changes. According to insider sources, the shares traded belonged to the Otudeko family, who have been in a series of legal and commercial disputes with the bank in recent years.
Otedola, now the chairman of First Holdco, had earlier acquired the largest individual stake in the group. Since his entry, First Holdco has undergone sweeping reforms, including boardroom shakeups, leadership changes, and aggressive legal moves to recover debts owed by stakeholders.
The Central Bank of Nigeria (CBN) will be required to screen and approve the new significant investor, as any holding above five per cent must undergo regulatory scrutiny.
The market responded positively to the deal, with First Holdco’s share price climbing to about N32, pushing its market capitalisation beyond N1.3 trillion. The transaction also lifted total turnover on the NGX by a staggering 807 per cent, as 11.67 billion shares worth N363.41 billion changed hands.
Analysts say the transaction may provide the fresh momentum First Holdco needs to accelerate its ongoing turnaround.
“This could be the turning point the bank needs,” one analyst noted. “With the exit of legacy interests and clarity of direction, reforms can now move faster.” Read More
