Top First Bank Investors, Otudeko, Otedola, Odukale Lose N24 Billion in One Week as CBN Imposes Limits

• The three majority shareholders in First Bank Holdings recorded considerable losses in one week
• Oba Otudeko, Femi Otedola, and Tunde Hassan-Odukale cumulative lost N24.64 billion
• Otudeko emerged as the biggest loser, followed by Otedola and Odukale, as investors shunned the banking group's shares

The three largest and majority shareholders in First Bank Nigeria Holdings, Oba Otudeko, Femi Otedola, and Tunde Hassan-Odukale, lost a massive N24.64 billion in one week.

Their losses came amid reports of a conflict between the largest shareholder, Otudeko, and the other two majority investors, Otedola and Odukale.

Otudeko leads highest list shareholders

Otudeko had purchased 4.77 billion shares, amounting to a 13.3% stake in the financial institution two weeks ago, triggering one of the biggest brawls in the banking sector recently.

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The majority shareholders of the holding company did not receive Otudeko's investment well, as they reportedly moved to oust him.

The alleged conflict in the holding company affected the capital market's sentiments, leading to investors offloading the company's shares and profit-takers milking the gains recorded in the first week of July after reports that an investor was buying considerable stakes in the company.

Financial experts believe that the tussles led to CBN releasing new shareholding guidelines, requesting that shareholders buying 5% equity in any banking group in Nigeria obtain its approval.

Biggest losers in FBN Holdings

The company's shareholding had appreciated to N20.3k on July 7, 2023, and climbed to tank at N23.3k per share on July 10, 2023, but by Monday, July 17, 2023, the company's shares declined to N17.35 per share.

The decline represents 14.53% in the banking group's share value, resulting in N24.64 billion being shaved off its total investment value held by the trio of Otudeko, Otedola, and Odukale.

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Otudeko accounted for the highest loss at N14,07 billion, as his investment value dropped to N82.76 billion from N96.83 billion held on July 7, 2023.

Otedola, with his 5.57% share, lost about N5.89 billion to the selloffs, dragging his investment in the banking group to N34.68 billion, below the N40.58 billion held in the company.

According to reports, Hassan-Odukale lost about N4.67 billion from his N32.20 billion investment in the bank. His total assets in the holding company now amount to N27.52 billion.

The cumulative N24.64 billion loss is part of a more considerable N105.89 billion loss recorded by the entire shareholders of FBN holdings in the week under review.

The losses decreased the bank's market capitalisation to N622.78 billion from N728.67 billion.

Ecobank urges First Bank to reject Oba Otudeko's 4.7bn shares acquisition

Legit.ng reported that Ecobank Nigeria Limited has issued a written communication to FBN Holdings Plc, the parent company of First Bank of Nigeria Limited, requesting a temporary suspension of proceedings concerning the acquisition of 4.77 billion shares by Dr Oba Otudeko, Chairman of Honeywell Group.

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It is worth noting that last Thursday, Honeywell Group, led by Oba Otudeko, made a substantial purchase of 4,770,269,843 company shares through a cross-deal, amounting to N87.8 billion.

This transaction stands out as the largest volume of First Bank shares traded in a single day since 2012 when the stock exchange began publishing data.

Source: Legit.ng