FBN Holdings Chairman, Femi Otedola, has increased his ownership in the company, strengthening his position as the single largest shareholder in the company.
Otedola bought an additional 797,946,415 shares at an average price of N21.58 each. This purchase, worth N17.2 billion, increased his total investment to N36.1 billion recently, raising his total ownership in the bank to 11.64%.
He is now the only shareholder with more than 10% of the bank’s shares.
This follows a significant purchase of N18.9 billion last week, which brought his shareholding to 9.41%. He now owns 4.178 billion shares out of the company’s 35.895 billion total shares.
Background on Femi Otedola’s Investments
Femi Otedola, one of the four Nigerian billionaires recognised by Forbes, has put about N102 billion into FBN Holdings over the past three years.
His journey to gain a major stake began in October 2021 when he first acquired a 5.07% shareholding. By December 2021, he increased his stake to 7.57%. In 2022, he reduced his share to 5.24% but started buying more shares in 2023 amid ongoing ownership disputes.
A review by the Central Bank early in 2024 showed that only Otedola and Oba Otudeko’s Barbican Capital owned over 5% of the shares. By the end of the first quarter of 2024, Otedola’s shareholding had increased to 7.01%, making him the largest shareholder.
READ ALSO: Femi Otedola’s Companies Surge: N1.92 Trillion Gains in Q1 2024
What This Means for Femi Otedola
Originally making his wealth in the energy sector, Otedola’s move into the financial industry has made him the only Nigerian billionaire (in dollar terms) to own a majority stake in a commercial bank.
His ongoing investments show a strong belief in the bank’s future and the overall financial sector. His ownership now accounts for about 13% of FBN Holdings’ N759 billion market value, which reached one trillion earlier this year during a market upturn.
As the bank looks to possibly issue new shares to meet its N500 billion minimum share capital requirement, Otedola might have a chance to further increase his stake, showing his influence and dedication to FBN Holdings’ growth.
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