Meet The Top 3 First Bank Shareholders Who Control a Combined 23% stake

Meet The Top 3 First Bank Shareholders Who Control a Combined 23% stake

In the past month, the matter of the ownership of First Bank of Nigeria has been in major discussions in the financial sector, heightened by a controversial massive share acquisition by a former chairman.

The 129-year-old bank which has a lot of subsidiaries across the world stands out as one of Nigeria's most successful banks with FBN Holdings, its parent company, increasing total assets to N14.177 trillion.

Asides from the controversy generated by the recent share acquisition, it is only imperative for us to get to know who the major investors in the bank are and the stake they each own in the business.

First Bank of Nigeria, Oba Otudeko, Femi Otedola, Tunde Hassan-Odukale
Oba Otudeko has the major shares in the bank, followed by Femi Otedola and then Tunde Hassan-odukale. Photo credit - Forbes, First Bank, Wikipedia
Source: UGC

Oba Otudeko (13.3% share)

Oba Otudeko, the Chairman of Honeywell Group, recently became the majority shareholder of the bank after securing a substantial 13.3% stake through the acquisition of 4.7 billion shares.

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This acquisition, valued at approximately N87.8 billion, was executed via Barbican Capital Limited, a subsidiary of Honeywell Group.

Notably, Oba Otudeko has a notable history in the banking sector, having previously held the position of Chairman at FBN Holdings.

However, his acquisition of First Bank shares has sparked controversy, as Ecobank Nigeria alleges that Otudeko, through his affiliated entities, is indebted to them for an amount totaling N13.5 billion.

Femi Otedola (5.7% share)

In 2022, Femi Otedola attracted significant attention when he conducted an audit of the bank's accounts for the fiscal year ending in December 2021.

The audit confirmed that he possessed 2,717,282,140 shares, equivalent to 7.57% ownership of the bank, making him its largest individual shareholder with more than 5% ownership.

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This revelation followed a prolonged boardroom dispute over the ownership of the company's major shares, leading to confusion and a series of press releases by the bank.

The situation became so complex that the Nigerian Exchange had to intervene to clarify the issues at hand.

Later in 2022, Mr. Otedola and his affiliated entities decided to sell approximately 834,939,764.00 units of shares, constituting about 30% of his total shareholdings in the bank's holding company.

Consequently, his shareholding was reduced from around 7.57% to approximately 5.57%. This sale marked another significant event in the evolving ownership dynamics of the bank.

Hassan Odukale (4.40%)

The next significant shareholder is Tunde Hassan Odukale, holding a combined 4.40% direct and indirect ownership.

Mr. Hassan-Odukale has been associated with First Bank of Nigeria Limited since 2011 when he joined as a Non-Executive Director.

Presently, he serves as the Chairman of the bank. Alongside his role at the bank, he holds the position of Managing Director at Leadway Assurance Company Limited.

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With an extensive executive management background spanning over 22 years, his expertise encompasses asset management, finance, IT, and life insurance operations.

His leadership and experience have contributed to his noteworthy shareholding in the bank.

Shareholders to vote to keep Otedola on First Bank board

In related news, reported that First Bank Holding Plc, the parent company of First Bank, announced Femi Otedola, a renowned billionaire investor and Chairman of Geregu Power, to serve as a non-Executive Director.

This appointment is subject to the approval of shareholders during the upcoming Annual General Meeting (AGM) scheduled for August 15, 2023.

The forthcoming AGM also provides an opportunity for shareholders to deliberate on the Director's fees for the financial year ending December 31, 2023, and the subsequent years.

Among the proposed resolutions, there is a plan to increase the Director's fees to N50 million per Director, with an additional N63.7 million proposed for the Board Chairman's compensation.


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