Oba Otudeko of Honeywell Group has reportedly returned as the largest shareholder in FBN Holdings. In a significant cross deal valued at N87.8 billion, Otudeko increased his ownership stake in the company to 4.7 billion shares, representing a 14% interest.
The shares, acquired at a rate of N19 per unit, represent the highest volume of First Bank shares traded within a single day since 2012, marking the beginning of data published by the stock exchange. However, the transaction has escalated concerns regarding the legitimacy of the trades, as no shareholder had previously been officially recorded as owning such a substantial number of shares.
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While an official press release clarifying the details of the trade is still pending from the Nigerian Stock Exchange, a shareholding disclosure submitted to the Company Secretary of FBN Holdings Plc on July 7, 2023, by Honeywell Group Limited revealed that Barbican Capital Limited, owned by Otudeko’s children, has procured a total of 4,770,269,843 shares in FBNH.
“We write on behalf of Barbican Capital Limited, an affiliate of Honeywell Group Limited and refer to the provisions of Sections 119 and 120 of the Companies and Allied Matters Act 2020 (as amended).
“In addition to the previously disclosed interests by Honeywell Group Limited’s affiliates, kindly take this as notification that, as of 7th July 2023, Barbican Capital Limited has acquired an aggregate of 4,770,269,843 shares in FBN Holdings Plc. Kindly accept the assurances of our highest regards.” Honeywell Group said in a “disclosure of shareholding”
In a letter signed by the acting company secretary, Adewale Arogundade, FBN Holdings Plc has also officially acknowledged the acquisitions made by Honeywell Group Limited.
“This is to inform the public and our stakeholders that the Company received a notification dated July 7, 2023, from Honeywell Group Limited that its affiliate, Barbican Capital Limited, has acquired an aggregate of 4,770,269,843 units of shares from the Company’s issued share capital of 35,895,292,791, as at the above-referenced date. Based on the foregoing, the equity stake of Barbican Capital Limited in the Company is 13.3%,” the letter read.
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Based on reports, the cross-deal supposedly included 26 proxy shareholders who are purportedly connected to Oba Otudeko. These shareholders consist of entities such as Bethlehem Properties Limited, Musa Haruna Foods, Yazidu Zakari Ventures Limited, Thornbull Securities Limited, and Moore House Limited. Additionally, other entities involved are Impressario Limited, Mahmoud Alheri Limited, Timothy Banfield Limited, and The WhitBread Limited.
The Backstory
Before 2019, Mr Otudeko was the largest shareholder at First Bank, having served on the Board of First Bank of Nigeria Plc for 12 years, he ultimately retired from the position of Chairman in 2010. Following the departure of Otudeko, a leadership vacuum arose at the bank, leading to a struggle for control between billionaire Femi Otedola and Hassan Odukale. Eventually, in 2021, Femi Otedola emerged as the primary shareholder, assuming the position of the bank’s largest shareholder.
In May 2022, Flour Mills of Nigeria acquired a 71.69% stake as well as the 5.06% stake held by FBNH in the Honeywell Flour Mills Plc, the flagship company of Honeywell Group owned by Oba Otudeko. After the transaction was finalized, Oba Otudeko pocketed N22.24 billion from the deal, which he used to settle a long-standing debt with First Bank.
After offloading HFMP, Otudeko’s Honeywell Group has focused on boosting its reputation as a top investment conglomerate in Nigeria. The company’s portfolio features diversified businesses in the oil and gas, energy, engineering, real estate, shipping, and security services sectors. With the latest acquisition, the Honeywell Group has added a bank to its investment portfolio.
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With a 14% shareholding, Oba Otudeko is currently spearheading the fight for control of First Bank of Nigeria Holdings Plc, while Mr Otedola has slipped to second place with a 9% stake. Hassan Odukale and Mike Adenuga are currently tied in joint third place, with each holding a 7% share in the company. Following them, Saheed Arisekole holds the fourth position with a 5% shareholding.
