Valuation Pops as Femi Otedola Acquires Majority Shares in FBNH
FBNH Plc sees an upward valuation adjustment as Billionaire investors Femi Otedola, Founder and Chairman of the Geregu Energy group pump money into the financial service boutique and the oldest lender in Nigeria, according to sources familiar with the development.
After the stock market close on Friday, investors now value FBNH at N440 billion, a handsome uptrend from the bottom of the pyramid in the Tier 1 group; to joining rank as one of the top 10 stocks on the local bourse.
With the handsome investment made via share acquisition, Mr. Otedola has become a single majority shareholder of FBN Holdings. The bank share price has popped strongly in the past weeks as valuation increased by some 70% amidst increase demand for the company stock.
Sources told MarketForces Africa later after an initial observation 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.
Otedola has been acquiring the shares of the bank through a vehicle, Calvados Global Services Limited. It is also likely that there could be other vehicles associated with Otedola who may have also been mopping up shares.
Demand for FBNH shares has been strong for the past week as the billionaire investors started building positions in a quiet and slow manner.
FBNH has 34.7 billion of its shares floating freely meaning it is held by diverse shareholders. This makes the shares easy to acquire on the stock exchange. 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. #Valuation Pops as Femi Otedola Acquires Majority Shares in FBNH