Otedola raises First HoldCo stake with ₦222bn deal
Femi Otedola, chairman of First HoldCo, has increased his investment in the financial institution by purchasing 1.77 billion additional shares through his investment firm, Calvados Global Services Limited.
A disclosure filed with the Nigerian Exchange (NGX) showed that the shares were acquired on Thursday in a deal valued at ₦222.20 billion.
Following the transaction, Otedola’s total holding rose from 9.99 billion shares to 11.77 billion shares, increasing his ownership stake in the company from 21.96 percent to 25.88 percent.
The latest purchase marks his second major share acquisition in July, after he bought 706.13 million shares worth ₦77.58 billion on July 22.
With the new acquisition, Otedola’s total investment in First HoldCo now stands at ₦1.47 trillion, making him the institution’s largest shareholder.
Under the Investments and Securities Act and the Securities and Exchange Commission (SEC) rules on mergers and acquisitions, a shareholder that acquires 30 percent or more of the voting shares of a public company is required to make a mandatory takeover offer to the remaining shareholders.
The acquisition comes only weeks after First HoldCo surpassed Zenith Bank to become the most valuable banking stock on the Nigerian Exchange, following a sustained rise in its share price.
