Otedola buys N77.6 billion in First HoldCo shares, nearing 22% stake

Femi Otedola, chairman of First HoldCo Plc, significantly boosted his stake in the banking group by acquiring 706.1 million new shares. The transaction, valued at N77.6 billion, was executed through his special purpose vehicle, Calvados Global Services Limited.

This latest acquisition brings Otedola's total interest in First HoldCo to 21.95%. He is now just about one percent shy of matching RC Investment, which holds the largest stake at 22.94%. RC Investment previously became the trustee for a substantial block of shares sold by former top shareholders Oba Otudeko and Oye Hassan-Odukale.

Otedola has been steadily increasing his holdings in First HoldCo since 2021. His most recent previous acquisition in June added 672.9 million shares, valued at N29.6 billion. The current purchase was part of the lender's N45 billion second tranche of its N350 billion private placement program.

First HoldCo, which briefly held the title of Nigeria's most valuable bank stock, intends to use the funds raised to bolster its commercial banking arm, First Bank of Nigeria Limited. This capital injection is part of a plan to restore capital and strengthen its overall balance sheet.