A significant shift has occurred in the ownership structure of First Holdco Plc, Nigeria’s oldest banking institution, following the exit of prominent investor Oba Otudeko through a transaction worth ₦323.33 billion.
The development involved the exchange of 10.43 billion ordinary shares of First Holdco in 17 negotiated off-market deals, priced at an average of ₦31 per share. The transaction accounts for roughly 25% of the group’s total equity, which stands at 41.87 billion shares in circulation.
Such trades are executed under the Nigerian Exchange’s (NGX) negotiated deal window—an arrangement that allows high-volume buyers and sellers to finalize terms such as price and volume privately, before executing the official transfer on the Exchange.
According to insider sources, the shares transacted were linked to the Otudeko family, known for their longstanding involvement in the bank’s affairs and ongoing ownership and governance disputes.
Currently, the most prominent stakeholders in the company include the Otudeko family, Femi Otedola, and Hassan-Odukale. While other investors hold sizable shares, only those with at least five percent equity are classified as significant under regulatory guidelines.
As of Thursday, the identity of the buyer remained undisclosed, in line with rules that allow time for the submission of relevant change-of-ownership documents.
For any major stake acquisition in a Nigerian bank, the Central Bank of Nigeria (CBN) must vet and approve the new investor. Industry stakeholders have called for an amicable resolution to the disputes involving the Otudeko family, who have historically steered the bank, and Femi Otedola, who represents a new wave of investment in the institution.
Since assuming the role of chairman at First Holdco, Otedola has led efforts to reposition the bank, including management shake-ups and legal action against key debtors.
Investor sentiment appeared optimistic following the deal, with First Holdco’s share price rising to approximately ₦32, pushing its market capitalization above ₦1.3 trillion.
The transaction also sparked increased activity on the Exchange, with total trading volume rising by over 800% to 11.67 billion shares, valued at ₦363.41 billion.
“This development had been anticipated by many in the market,” a senior investment banker told The Nation, suggesting that the ownership transition could usher in a fresh chapter for the group.
Analysts believe this could be a transformative moment for First Holdco, potentially enabling the company to implement much-needed reforms.
