Femi Otedola grabs 20.42% stake in First HoldCo via N29.6B private placement at N44/share
Billionaire Femi Otedola now controls 20.42% of First HoldCo after acquiring 672.9 million shares at N44 each in the bank's recently completed private placement - a N29.6 billion investment representing a 27% discount to Thursday's N60.50 market price. This makes him the largest shareholder in Nigeria's financial services group, further consolidating his control.
The N45 billion private placement (second tranche of their N350 billion capital raising program) directly funds First Bank of Nigeria Limited's capital restoration, boosting First HoldCo's share capital to approximately N525.6 billion - comfortably above the CBN's N500 billion minimum requirement for banks with international authorization. Otedola previously purchased 549.5 million shares in May at N79 per share (N43.4B), demonstrating sustained confidence in the group.
Proceeds will strengthen First Bank's balance sheet as part of Otedola's broader recapitalization strategy, which has already injected ~N270 billion into the subsidiary. Another tranche of the private placement is reportedly planned at similar N44 pricing, according to Nairametrics.
Will other shareholders participate in this discounted round to limit further dilution, or accept Otedola's growing influence as the trade-off for First Bank's strengthened balance sheet and long-term competitiveness?