Chairman of First HoldCo Plc, billionaire businessman Femi Otedola has increased his stake in the financial services group after purchasing additional shares worth N222.20 billion.
The latest purchase, through his investment vehicle, Calvados Global Services Limited, was disclosed in a statement filed with the Nigerian Exchange (NGX) on Thursday.
The deal comprised 1.77 billion shares, lifting Otedola’s stake in First HoldCo from 9.99 billion shares to 11.77 billion shares.
As a result, his ownership rose to 25.88 per cent from 21.96 per cent, the filing showed.
The transaction is Otedola’s second big share purchase in First HoldCo in July, further entrenching his position as the company’s biggest individual shareholder.
Read Also:Over 2.5 Tonnes of Illicit Drugs Recovered in Edo as NDLEA Arrests 49
On July 22, Otedola bought another 706.13 million shares valued at N77.58 billion.
With the latest acquisition added to his earlier holdings, Otedola’s total investment in First HoldCo is now estimated at about N1.47 trillion. The latest buy also takes his stake closer to the 30 per cent threshold which would trigger a mandatory takeover offer under Nigeria’s capital market rules.
Under the Investments and Securities Act and the rules of the Securities and Exchange Commission (SEC), a shareholder who acquires 30 per cent or more of the voting shares of a listed company is required to make a mandatory offer to the other shareholders to acquire their shares.
Otedola’s latest investment comes as First HoldCo continues to generate strong interest from investors on the Nigerian stock market.
The financial services group has recently overtaken Zenith Bank to become Nigeria’s most valuable banking stock by market capitalisation, following a strong rise in its share price.
Otedola’s rising stake is being interpreted as a vote of confidence in the long-term prospects of First HoldCo and its ongoing transformation and expansion in Nigeria’s financial services industry.
His latest investment further cements his influence in the group and could keep market attention on whether he will increase his holding further towards the 30 per cent regulatory threshold.
First HoldCo is the holding company for FirstBank Nigeria and other financial services companies in the group.