FBN Holdings Fails to Recognise Otudeko as Shareholder
FBN Holding Plc (FBNH) has failed to list Oba Otudeko as a shareholder despite a large share acquisition credited to its erstwhile bank board Chairman acquired from the stock market. According to insiders, FBNH resisted the attempt to bring Otudeko into its fold after a failed Boardroom coup.
However, the Central Bank of Nigeria replaced the entire boards of FBN and FBNH and reinstated the former executive directors and CEO, Dr. Adesola Adeduntan after the coup attempt. Otudeko had moved to return as board chairman with the acquisition of a 14% interest in the financial services group.
Honeywell Group Limited told regulatory authorities that it bought 4,770,269,843 shares of FBN through its affiliate company, Barbican Capital Limited, according to a statement posted on its website after unusual share purchases that lifted FBNH market valuation higher.
With less than 6% single largest shareholding controlled by Femi Otedola, according to an audited report, Otudeko then doubled down interest in the financial services group he led as Chairman up till 2019.
Data from the Nigerian Exchange (NGX) shows that FBNH Plc’s market capitalisation has increased from the lower end of the class to mid-level following a large share acquisition that occurred mid-year. The group is now worth more than N700 billion in market value following a sustained positive movement in its share price.
According to FBNH Plc’s 9-month unaudited financial statement, Otedola’s total shareholding was 5.65%, rising from 5.57% in the comparable period in 2022. Tunde Hassan-Odukale, another influential shareholder owned 4.40%, a drop from 4.42% held in the comparable period in 2022.
FBNHoldings Plc with a free float value of N521,424,920,295.90 (88.85%)as of September 30, 2023, is compliant with the Nigerian Stock Exchange’s free float requirements for companies listed on the Premium Board, it said in its unaudited financial statement reviewed.
Since Otudeko acquired the shares earlier in the year, analysts said it is supposed to reflect on the financial services group’s shareholding table in the third quarter. There is more to it than meet the eye – In all respect, FBNH is the victim.
Detail review to follow Naira Devaluation Deepens Economic Crisis in Nigeria
