FBNH Confirms Femi Otedola as Chairman

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FBN Holdings Plc in a statement on Saturday has confirmed Chairman of Geregu Energy, Femi Otedola as it Chairman  of the group because he has single majority of the shares after the acquisition of 5.07% of its entire shareholdings from the Nigerian Exchange.

The bank said this in a notification signed by its company secretary, Seye Kosoko submitted again to the Nigerian Exchange, as FBNH valuation rising strongly to N440 billion the share ramp-ups.

Less than 24 hours after the FBNH team denied in a notification of possible acquisition of shares by Mr Femi Otedola, it has now been confirmed that the business mogul had acquired a 5.07 per cent equity stake in the company.#

When a company’s share price started popping, it is more likely that an investor is pumping money to take a position for specific reasons.

From a low point of N7.30 early in the year, FBNH share price peaked at N12.40, according to a mid-day report on Friday before it settled at N12.1 per share at the close of the week trading session.

Kosoko, categorically affirmed in the latest statement that Otedola and his nominee now own a 5.07 per cent equity stake in the company., giving the billionaire strong influence on the strategy and operations of the financial service group.

“We refer to our communication to the market dated October 22, on the above subject wherein we stated that we would inform the public of any substantial acquisition, upon receipt of notification from the Shareholder.

“This morning, Oct. 23, 2021, FBN Holdings Plc received a notification from APT Securities and Funds Ltd., that their client, Mr Otedola Olufemi Peter and his nominee, Calvados Global Services Ltd. have acquired a total of 1,818,551,625 units of shares from the company’s issued share capital of 35,895,292,791.

“Based on the foregoing, the equity stake of Mr Otedola Olufemi Peter and his nominee in the company is now 5.07 per cent,” said the statement.

Commenting on the issue, Malam Garba Kurfi, the Managing Director, APT Securities and Funds Ltd., said Otedola is now the largest single shareholder in the company.

Kurfi who dispelled the rumours that Otedola had acquired FBN Holdings said he was only the largest single shareholder. He noted that 95 per cent of FBNH shares were still in the hands of other shareholders, comprising Pension Fund Administrators and other individuals.

Kurfi said Otedola started buying into the company in July when the opportunity arose. However, the news agency gathered that it was Oba Otudeko that sold all his stakes due to the issues he had with the Central Bank of Nigeria.

“If he put up his shares for sale, anyone that has money is free to buy such shares. Otedola is not the only one that bought, someone else bought too. Once a company has left 20 per cent of their stake to the public they are within the regulations.

“The only requirement is that those that bought need to notify the Securities and Exchange Commission, once they do that there is no infraction,” said the source. #FBNH Confirms Chairman of Geregu Energy, Femi Otedola Largest Shareholder

In the same vein; Valued at about N440 billion, FBN Holdings Plc has now joined the ten (10) most capitalised stocks on the Nigerian Exchange. The bank share price closed at N12.1 today following a drop reported from the stock market mid-day report.

An indication emerged that Femi Otedola is behind a massive mop-up of the shares of FBN Holdings, which would result in his becoming the single majority shareholder of the company after N30 billion worth of shares purchased.

Otedola has been acquiring the shares of the bank through a vehicle, Calvados Global Services Limited. It was gathered that Otedola, through his proxies and investing vehicles, now owns over five per cent of the bank, setting himself up to be the single largest shareholder of the bank.

The amount investors now place on the ticker could buy Sterling Bank Plc 10 times in the open market. Sterling Bank as of today is valued at N44 billion.

From the mid-class, the oldest financial institution got its grooves back to joining the league of market movers on the local bourse. The financial service boutique now plays in the league of market movers like Zenith, GTCO etc – though still a mile away.

In the local bourse, investors are pumping money into the financial stocks, with the possibility of a better performance amidst the third-quarter earnings. Today, equity investors gained N31 billion, taking the total market capitalisation higher above N21 trillion.

FBNH has seen an unusually high demand for its shares, a trend some analysts relate with the group profitability prospect and solid dividend payment track record.

MarketForces Africa had reported the sky-high jump in demand for lender’s shares which prompted stock price re-rating amidst the ongoing rally.

FBNH is now worth more than the United Bank of Africa and Access Bank Plc, rising from the bottom of the pyramid. The financial service boutique has now taken a position as the third-largest by market capitalisation in the Tier 1 capital group.

The group is now trailing Stanbic IBTC in terms of market valuation which some analysts predict could outpace if the solid momentum seen is sustained.

From nearly being one of the cheapest stocks despite its size, FBNH shares now trade at N12.40, shows mid-day trading report Friday, from N7.30 earlier in the year, thus outperforming the NGX All-share index per mile.

Equity investors, shareholders in FBNH Plc have popped 70% gain on the stock as analysts look into the future prospect. #FBN Holdings Joins 10 Most Capitalised Stocks on NGX

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