FBN Holdings Plc (FirstHoldco) shares have surged by more than 20% in just two trading sessions in the aftermath of the sales of 10.47 billion units of shares worth N324.47 billion by Oba Otudeko which represents the largest single-day block trades in the market this year.
FBN Holdings stock, which closed at N29.30 on Monday, July 14, jumped to N32.20 on Wednesday and extended its rally to N35.40 in early morning trading on Thursday, July 17, pushing its market capitalisation above N1.3tn. This reflects growing market interest in a significant change in the company’s ownership structure.
Oba Otudeko, the erstwhile Chairman of FirstHoldco, was forced to sell off over 20 percent of shares linked to him as the bank’s management, controlled by Otedola, moved to criminalise and prosecute Otudeko’s past misdeeds in the Federal High Court, Lagos, even when the issues had been settled commercially with regulatory action.
Entities linked to Oba Otudeko and Tunde Hassan-Odukale, another shareholder sold a total of 10.433 billion First Holdco shares to a relatively unknown company- RC Investments Management Limited, in a deal valued at N323.45 billion, the highest off-market transaction ever seen on the NGX.
The transactions were negotiated deals, which meant the trades were arranged privately between parties and then reported to the Exchange andnot through the regular buy/sell orders seen during daily trading sessions.
17 separate deals took place involving First Securities Ltd as the buyer with CardinalStone Securities Ltd, Meristem Stockbrokers Ltd, Renaissance Capital (Rencap) Securities Ltd, Regency Asset Management Ltd, United Capital Securities Ltd, Stanbic IBTC Stockbrokers Ltd as the seller of First Holdco’s stock.
Otudeko’s exit marks a turning point in the group’s ownership structure. Market analysts say the transaction clears the path for a fresh phase of reforms being championed by Otedola, who is now the chairman of First Holdco.
Chapel Hill Denham has once again been named Nigeria’s Best Investment Bank by the prestigious… Read More
Germany has quietly become one of the most attractive countries for freelancers and digital nomads… Read More
President Bola Ahmed Tinubu has approved the establishment of the South-East Investment Company (SEIC), a… Read More
Burkina Faso's military junta, led by Captain Ibrahim Traoré, has disbanded the country's electoral commission,… Read More
Oil prices climbed on Friday due to the European Union’s latest sanctions on Russia, and… Read More
Uganda is set to build a domestic refinery worth $4billion in partnership with a UAE-based… Read More
