*Business mogul takes over oldest Nigerian bank
In what can be regarded as one of the biggest acquisitions in the banking sector, a business mogul and former Chairman of Forte Oil Plc, Mr Femi Otedola, has acquired majority shares in the FirstBank.
The billionaire, according to multiple sources, bought shares worth N30billion, making him the bank’s largest single shareholder.
But the First Bank Holdings, owners of FirstBank of Nigeria, on Friday denied knowledge of a takeover of the company by Otedola.
Incidentally, First Bank Holdings did not deny the possibility of an acquisition; saying that it was yet to receive a notification of a significant holding by Otedola.
An online medium, Premium Times, also quoted a notice by the FBN Holding to the NGX Exchange on Friday as saying that, “As a listed company, the shares of FBN Holding Plc are publicly traded, and sale and acquisition of shares is expected in the normal course of business.
“We operate in a regulated environment, which requires notification of significant shareholding by Shareholders to the company, where shares are held in different vehicles, further to which the company will notify the regulators and the public as appropriate.”
Sources close to the transaction also disclosed that with Otedola’s N30billion controlling shares in FBN Holdings, the development will make him the single largest shareholder of the bank.
With this development, Otedola, being the largest shareholder, holds the highest voting shares, giving him power to dictate the direction of the bank through his voting power. The battle for the control of Nigeria’s oldest bank, among two power blocs dominated by key shareholders with interests in its ownership, was responsible for the recent shake-up of the bank’s board.
One of the blocks is led by Nigeria’s second richest man, Chief Mike Adenuga, according to reports.
But the Central Bank of Nigeria had in April this year, dismissed the boards of the bank and its holding company, FBN Holdings, a day after the bank appointed a new managing director to replace the incumbent MD, Dr Adesola Adeduntan.
The CBN swiftly called the bluff of the bank’s board and reinstated Adeduntan.
The CBN admitted that First Bank, which has over 31 million customers with a deposit base of about N4.2trillion shareholders’ funds of N618billion has for years been plagued by “bad credit decisions, significant and non-performing insider loans and poor corporate governance practices”.
It was further gathered that the main reason for the crisis is the tussle for control of the FirstBank between a block led by Honeywell boss, Mr Oba Otudeko, who until recently was the chairman of FBN Holdings’ board, and Adenuga, who recently emerged as one of the biggest shareholders in the bank.
Theideal recalls that the CBN removed Otudeko, his ally on the board of FirstBank of Nigeria Limited, Mrs Ibukun Awosika, as chairmen of FBN Holdings and FirstBank respectively.
But Adeduntan, who was said to have represented the interest of a late Ibadan business mogul and prominent shareholder, Arisekola Alao, was reinstated as the bank’s MD and chief executive.
FBN Holdings makes U-Turn, acknowledges Otedola’s shares
In a related development, the First Bank of Nigeria Holdings (FBNH), has made a U-turn over its former stance and acknowledged that Otedola has acquired substantial shares in the bank.
In a notice made available on Saturday, the FBNH said, “ We have received a notification from APT Securities and Funds Limited, that their Client, Mr. Otedola Olufemi Peter and his nominee, Calvados Global Services Limited have acquired a total of 1,818,551,625 units of shares from the Company’s issued share capital of 35,895,292,791.
“Based on the foregoing, the equity stake of Mr. Otedola Olufemi Peter and his nominee in the Company is now 5.07%.”
FBN Holdings had earlier insisted that it operates in a regulated environment which required notifications of significant shareholding by shareholders to the company, where shares are held in different vehicles.
