Nigerian business magnate Femi Otedola has significantly increased his ownership in First HoldCo Plc, acquiring shares valued at N14.8 billion. This latest transaction, conducted through Calvados Global Services Limited, elevates his total stake in the financial holding company to approximately 17.56 percent, reinforcing his standing as one of its largest individual shareholders. The move signals continued confidence in the banking sector amidst ongoing regulatory changes.

Details of the acquisition, disclosed in a filing with the Nigerian Exchange, confirm that Calvados Global Services Limited, an entity associated with Mr. Otedola, purchased 369,986,122 shares of First HoldCo. The transaction, executed on December 18, 2023, at a price of N40.06 per share, significantly boosted the day’s trading volume for the stock. This substantial investment underscores a strategic push by the prominent investor.

The recent purchase dramatically alters Mr. Otedola’s overall shareholding structure within First HoldCo. His indirect holdings are now projected to rise to 3,861,111,708 shares, constituting 9.22 percent of the company. Combined with his direct holdings, this latest acquisition firmly positions him with a commanding 17.56 percent of the total issued shares, consolidating his influence within the financial institution.

This N14.8 billion deal is not an isolated event but rather a continuation of Mr. Otedola’s consistent strategy of accumulating First HoldCo shares over the past two years. In September 2023, for instance, he acquired 64.87 million shares worth N2.01 billion, a transaction that saw his stake increase from 13.15 percent to 16.1 percent. This steady upward trajectory highlights a deliberate long-term investment approach.

First HoldCo’s shares have shown robust performance in recent weeks, partly buoyed by such significant insider activity. The stock recorded a 29 percent gain throughout December, with month-to-date gains reaching an impressive 37.36 percent. Its price currently stands at N42.65, a notable increase from N31.05 recorded in November, reflecting positive market sentiment and investor interest. Total trading volume for the month has surpassed 657 million shares.

The increased insider investment coincides with a crucial period for Nigeria’s banking sector, which faces a central bank recapitalisation deadline set for early 2026. Financial institutions are mandated to bolster their capital buffers and enhance asset quality in anticipation of impending equity raises. This regulatory imperative is driving strategic financial manoeuvres across the industry.

In line with these regulatory demands, First HoldCo is reportedly nearing the completion of a private placement, a key component of its broader capital raising initiatives. This strategic move aims to fortify the company’s capital base well ahead of the recapitalisation window. Such proactive measures are vital for banks seeking to meet the stringent new capital requirements.

Mr. Otedola’s substantial investment is part of a broader trend of insider activity within First HoldCo. Recent months have seen other significant share purchases, including a N2 billion acquisition by a company linked to First Bank Chairman Ebenezer Olufowose. Additionally, an entity associated with Group Managing Director Adebowale Oyedeji purchased shares worth N33.96 million, collectively indicating strong internal confidence in the institution’s future.

The aggressive accumulation of shares by key figures like Femi Otedola sends a powerful signal to the market regarding the perceived value and future prospects of First HoldCo. Such concentrated ownership can influence corporate governance, strategic direction, and overall market perception, particularly as the bank navigates a period of significant regulatory transformation and capital restructuring. This heightened insider commitment could also be interpreted as a defensive strategy against potential hostile takeovers or a move to solidify control.

Analysts are closely monitoring these developments, as substantial insider investments often precede periods of significant corporate growth or strategic shifts. The sustained interest from prominent investors, coupled with the bank’s proactive capital-raising efforts, positions First HoldCo as a focal point within the Nigerian financial landscape. The market anticipates further developments as the recapitalisation deadline approaches.

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Keywords: Femi Otedola, First HoldCo Plc, share acquisition, Nigerian banking sector, N14.8 billion investment, First HoldCo shareholding, banking recapitalisation Nigeria, Calvados Global Services