Otudeko Sells ₦323bn Stake in First Bank, Otedola Set to Reshape Leadership
A major shake-up of ownership at Nigeria’s oldest banking group, First Bank Holding Company Plc (First Holdco), influential shareholder Oba Otudeko has exited the institution following a monumental N323.33 billion block deal on the Nigerian Exchange Limited (NGX).
The landmark transaction involved the sale of 10.43 billion ordinary shares representing a 25 per cent majority stake in First Holdco executed through 17 negotiated off-market deals at an average price of N31 per share. The deal significantly alters the ownership dynamics of the bank, which currently has 41.87 billion shares in circulation.
According to the NGX, negotiated window transactions allow high-volume trades to be pre-arranged in terms of price and volume before formal execution, thereby ensuring smoother market absorption and reduced price volatility.
Oba Otudeko’s divestment marks a critical turning point in the bank’s recent history, as attention now turns to billionaire businessman Femi Otedola, who currently serves as chairman of First Holdco. Market analysts have suggested that the development clears the path for sweeping reforms under Otedola’s leadership.
In line with regulatory requirements, the Central Bank of Nigeria is expected to review and approve any new significant investor that emerges from the transaction.
The market responded positively to the news. First Holdco’s share price jumped to N32, propelling its market capitalisation beyond N1.3 trillion. The trade also triggered a remarkable increase in overall market activity, with total turnover surging by 807 per cent to 11.67 billion shares valued at N363.41 billion.
Boniface Okezie, National Coordinator of the Progressive Shareholders Association of Nigeria, described the deal as a milestone that firmly positions First Bank for the future, especially as the sector prepares for recapitalisation.
“First Bank is now positioned on the right side of history,” Okezie said. “This transaction gives them breathing room to tidy up their capital position, and given their legacy, they are well-placed to outpace younger banks in the recapitalisation race.”
The deal underscores ongoing shifts in Nigeria’s banking sector as institutions brace for increased capital requirements and tighter regulatory scrutiny. For First Holdco, the exit of a legacy shareholder could herald the beginning of a new chapter in its storied existence.
