Femi Otedola increases stake in FBN Holdings with purchase of 534 Million additional Shares 

Billionaire investor and Chairman of FBN Holdings, Femi Otedola, has further consolidated his position as the largest shareholder in the financial services giant.

According to a recent filing with the Nigerian Exchange Group (NGX), Otedola acquired an additional 534,094,407 shares at N30.00 per share, bringing the total value of this latest acquisition to approximately N16 billion.

This latest move increases Otedola’s total stake in FBN Holdings by 1.49%, taking his total shareholding to a commanding 13.16%.

His continued acquisition spree underlines his determination to strengthen his influence over one of Nigeria’s oldest financial institutions.

Otedola’s share acquisition spree 

This recent acquisition follows Otedola’s previous purchase in July, when he made headlines after acquiring 797,946,415 shares at an average price of N21.58 per share, a transaction valued at N17.2 billion.

That acquisition raised his stake to 11.64%, making him the first shareholder to hold more than 10% of the company’s equity.

Earlier in the year, Otedola had already spent N18.9 billion acquiring shares, bringing his stake to 9.41%. In total, his acquisitions in recent months have amounted to over N36 billion. With this latest purchase, Otedola now holds a combined 4.712 billion shares of FBN Holdings, out of the company’s total outstanding shares of 35.895 billion.

A strategic vision for FBN Holdings 

Since first acquiring shares in FBN Holdings in 2021, Otedola has invested an estimated N102 billion into the company.

• His journey to becoming the largest shareholder has been marked by strategic moves and a clear focus on consolidating his stake. In October 2021, Otedola initially secured a 5.07% shareholding, and by December, he had increased his stake to 7.57%.
• In mid-2022, Otedola briefly reduced his stake to 5.24%, divesting around 30% of his holdings. However, he resumed accumulating shares in 2023 as uncertainty around the bank’s majority ownership continued.

• By the first quarter of 2024, Otedola’s stake had risen to 7.01%, officially surpassing Oba Otudeko’s Barbican Capital as the single largest shareholder.

The latest acquisition of 534 million shares at N30 each now positions Otedola with a 13.16% majority stake in FBN Holdings, solidifying his control over the company’s future.

 Implications for FBN Holdings and the Nigerian Financial Sector 

Otedola’s increasing stake in FBN Holdings reflects a broader shift in his business interests. Known primarily for his investments in the energy sector, his foray into financial services marks a significant diversification of his portfolio. As the largest individual shareholder of FBN Holdings, Otedola becomes the first Nigerian billionaire to hold such a significant stake in a commercial bank, highlighting his growing influence in the sector.

This level of control also comes with significant governance implications. Under Otedola’s leadership, FBN Holdings has seen major changes, including the appointment of a new Managing Director and CEO, as well as a reconstitution of the board of directors, with Otedola now serving as Chairman. His influence will be crucial as the bank navigates regulatory challenges and strives for continued growth in a competitive market.

Otedola’s investment also signifies strong confidence in the long-term prospects of FBN Holdings and the broader financial services sector. His investments now represent around 13% of FBN Holdings’ N759 billion market capitalization, which earlier this year surged to a high of N1 trillion amid bullish market conditions.

As Otedola shifts from energy to finance, his vision for FBN Holdings will shape the future of one of Nigeria’s most iconic banks. His strategic investments demonstrate long-term confidence in the financial services sector and suggest that he will play a central role in guiding the institution through upcoming challenges.