Femi Otedola’s stake in First HoldCo has risen to about $1.42bn after the bank’s shares hit a record N159.90, taking his holding to N1.97tn
Otedola’s First HoldCo Stake Soars to $1.4bn After Bank Shares Hit Record N159.90
Nigerian billionaire businessman Femi Otedola’s stake in First HoldCo has climbed to about $1.42 billion after the financial group’s shares surged to an all-time high of N159.90 on Tuesday.
The record share price has lifted the value of Otedola’s approximately 12.34 billion shares in First HoldCo to about N1.97 trillion, representing roughly 27.6 per cent of the company.
At an exchange rate of N1,390 to the dollar, the holding is now worth approximately $1.42 billion, underscoring the rapid increase in the value of Otedola’s investment as he continues to accumulate shares in Nigeria’s oldest banking group.
The latest rally is particularly significant when measured against the price of his most recent acquisition. Otedola’s investment vehicle, Calvados Global Services, purchased 95,699,240 First HoldCo shares at N131.48 each on August 24, spending N12.58 billion on the transaction.
Since that purchase, First HoldCo’s share price has risen by 21.6 per cent, adding roughly N350.6 billion, or about $252 million, to the value of Otedola’s overall holding in just eight days.
Otedola’s buying spree has been one of the most notable developments in Nigeria’s banking sector this year. In May, he acquired 549.54 million shares for N43.41 billion before taking up another 672.9 million shares through a private placement in June at N44 per share.
He subsequently bought 706.13 million shares on July 22 for N77.58 billion and followed that with a massive acquisition of 1.78 billion shares on July 30 at N124.90 per share, in a transaction valued at N222.21 billion.
Two more purchases came in August, with Otedola acquiring 138.04 million shares at N131.20 each on August 6 and another 147.74 million shares at N140 per share on August 14, before his latest purchase on August 24.
All of the shares acquired by Otedola this year were purchased below Tuesday’s record closing price.
First HoldCo is the parent company of FirstBank, which was founded in 1894. Otedola, who became chairman of First HoldCo in January 2024, has publicly stated his ambition to increase his ownership of the group beyond 51 per cent.
At the current share price, however, achieving that target would require a substantial additional investment. Based on approximately 44.77 billion outstanding shares, reaching a 51 per cent stake would require Otedola to acquire about 10.49 billion additional shares.
At N159.90 per share, those additional shares would cost approximately N1.68 trillion, equivalent to about $1.21 billion at the N1,390-to-dollar exchange rate.
Before reaching the 51 per cent target, Otedola faces another important regulatory threshold. Nigerian takeover rules require a mandatory offer for the remaining shares when an investor crosses the 30 per cent ownership threshold.
Otedola currently sits about 2.4 percentage points below that level, with each of his recent purchases moving him closer to the threshold.
The funds behind the aggressive accumulation came largely from another major Otedola investment. On December 29, he sold his 95 per cent controlling stake in Geregu Power to MA’AM Energy for N1.088 trillion, about $750 million.
The transaction was financed by a consortium led by Zenith Bank, after which Otedola began deploying the proceeds into First HoldCo shares.
The strategy is consistent with Otedola’s previous investment history. He acquired African Petroleum, renamed it Forte Oil, built a controlling interest and eventually sold the business in 2019.
He later took a 51 per cent stake in Geregu Power, increased his ownership to 95 per cent and listed the company on the Nigerian Exchange in 2022 before exiting his position.
The scale of Otedola’s investment in First HoldCo has also helped propel the lender to the top of Nigeria’s banking market. In July, First HoldCo overtook Guaranty Trust Holding Company and Zenith Bank by market capitalisation, becoming the first Nigerian banking group to cross the N6 trillion mark.
The group, valued at about $4.4 billion at the time, became the country’s most valuable listed lender. Its shares have risen dramatically from N47.90 at the beginning of the year to Tuesday’s record N159.90.
The rise in First HoldCo’s market value has coincided with a strong improvement in its financial performance.
For the six months ended June, First HoldCo reported a profit after tax of N526.1 billion, equivalent to about $378 million, representing an 81.6 per cent increase from the N289.77 billion recorded in the corresponding period of the previous year.
The stronger earnings were supported by lower impairment charges, improved asset quality and stronger trading income.
Otedola has not disclosed another purchase of First HoldCo shares since his August 24 acquisition, leaving investors watching closely to see whether the billionaire will resume his aggressive buying as the stock trades at record levels.
