A major shareholding change occurred at Nigeria’s oldest banking group, First Holdco Plc as key shareholder Oba Otudeko, exited the group in a N323.33 billion deal.
A total of 10.43 billion ordinary shares of First Holdco were swapped on the Nigerian Exchange (NGX) in 17 off-market, negotiated deals at an average price of N31 per share.
The transaction, valued at N323.33 billion, represented about 25 per cent majority stake in the group, which currently has 41.87 billion outstanding shares.
The negotiated trade window of NGX allows buyers and sellers with significant transactions to pre-arrange the terms, including price and transfer, outside the ordinary price discovery of the general market. Such transactions are then brought to the market for formal transfer and completion of ownership change.
Insider sources said the First Holdco shares traded yesterday were held by the Otudekos, who have been embroiled in ownership and customer tussles with the banking group.
There are three well-known major shareholders in the banking group- the Otudekos, Femi Otedola and Hassan-Odukale. Several other shareholders hold reasonably large but less than significant stake. A significant stake represents five per cent equity stake or more, according to extant rules.
However, the identity of the buyer remained unverified as at close of business as extant rules allow some extended period for filing of necessary documents on change of ownership.
