First Bank of Nigeria (FBN) Holdings in a recent report has disclosed the sale of 834 million shares or approximately N9.28 billion by Nigerian billionaire and chairman of Geregu Power Plant, Femi Otedola.
Driving the news
By filing this report, FBN Holdings is obeying the Nigerian Stock Exchange (NSE) rule of notifying investors of significant share sale. According to the NSE’s website, Mr. Femi Otedola and his other entities have over the last 3 days sold about 834,939,764.00 units or 30% of his total shareholdings in the bank’s holding company, representing 2.3% of his shares in FBN Holdings.
- This share sale reduces his total shareholdings from 7.57% to 5.24%. The website earlier reported 274 million and 600 million on Friday June 3rd and Monday, June 6th 2022, respectively.
- This sales report is coming a few weeks after FBN Holdings announced Femi Otedola as the largest shareholder of the bank with a 7.57% stake in its Q1 2022 report after a power tussle with Mr. Tunde Hassan Odukale.
What they are saying
Investors fear that the Nigerian billionaire might exit the bank, an outcome that speculatively affects the valuation of the bank at a time it is experiencing its best price in years.
What you should know
- In the time Femi Otedola began acquiring FBN Holdings shares, the bank’s price tally shot up to N12 from N6.
- Again, the bank’s price tally has constantly traded between N11 and N12 since the Nigerian businessman was announced as the majority shareholder.
- By the close of business on Tuesday, FBN Holdings had begun falling below the N11 share price, representing a 3.11% drop.