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Otedola Increases Stake in First Bank, Now Holds, 7.57 Percent in FBN Holdings



Femi Otedola

The corporate industry is not immune to power tussle, as wealthy and influential people in different economic sectors go head to head with shares and stakes. Femi Otedola, the billionaire investor and the Chairman of Geregu Power Plant, has once again increased his stake in FBN Holdings (the parent company of First Bank) to 7.57 percent. This makes him the single largest majority holder in the bank, according to public disclosure of ownership.

Femi Otedola and Tunde Hassan-Odukale, the Chairman of First Bank and the Managing Director of Leadway Assurance Company Limited, have been in a sort of tussle concerning First Bank shares for quite some time.  Femi Otedola acquired 1.81 billion shares earlier in the year through his investment vehicle, Calvados Global Services Limited. However, the share acquisition was surprising as neither Otedola nor First Bank informed the Securities and Exchange Commission (SEC) or the Nigerian Exchange Group (NGX) during the acquisition process.

The possibility of Otedola taking over did not sit right with Tunde Hassan-Odukale and his supporters, as a letter later appeared online that Odukale was the largest shareholder in First Bank Holdings, but this claim was not supported by the financial statements released from 2020 to 2021.

The letter was quickly recognised as an attempt to push back Otedola, who was all out to own a sizeable chunk of the leading financial institution.

After reports that Otedola was set to take over and the letter claiming that Odukale has more than 5%, First Bank released its own report denying any such shareholder but later acknowledged that Otedola has revealed the number of his shares.

Later on, First Bank confirmed that both Otedola and Odukale were in possession of more than 5% controlling stake.

To be precise, Femi Otedola’s stake in FBN Holdings was 5.07 percent at the time. However, news started going around that Seye Kosoko, the company secretary had attributed Leadway Pensure PFA’s entire 2.11% stake in the bank to Tunde Hassan-Odukale in a letter forwarded to the Nigerian Exchange limited (NGX).

That would have taken Tunde Hassan-Odukale’s total shares to 5.36%, which would have made him the single largest shareholder in the company as it would have totaled higher than Femi Otedola’s stake which was at 5.07% at the time.

However, the National Pension Commission (Pencom) confirmed that any funds invested in First Bank Holdings by Leadway Pensure Ltd belong to the holders of Retirement Savings Accounts (RSA). This confirmation silenced any claims that Odukale owned a stake of up to 5.36%.

First Bank also went ahead to explain that it did not list Tunde Hassan-Odukale as a 5% holder, but divided and recorded his shares as 4.16% (direct, personal shares) and 1.2% for Leadway shares.

Naturally, holding a stake of more than 5% in a company like First Bank is likely to give one a sense of power and control given the numerous investors in the leading bank.

Otedola has been an active participator in the Bank’s dealings. In October, he placed on record that he had invested the amount of $30 million in the bank’s long-term debt instrument, which was classified as Tier II capital and which makes a vital portion of the bank’s capital base.

Otedola said he made the investment due to his faith in the Nigerian economy which he termed as resilient and with a bright future. He urged people to look into the future, stating that the security challenges plaguing the country will be resolved and the country will once again receive its glory status.

The power tussle is ongoing as both sides have made moves and responded to the moves of the ‘opposition’.

A report made on December 11 revealed that about 1.1 billion units of First Bank of Nigeria Holding shares had been exchanged in only four days. This suggests that the battle for control of the bank is still ongoing, with no end in sight. The data was gathered from the daily trade volumes that were recorded by the company on the Nigerian Stock Exchange’s trading engine.

The data shows that 128.8 million units were traded on Monday, with 364 million units coming on Tuesday. Wednesday saw the trade of 441.9 million units and Thursday witnessed 228.5 million shares traded.

The power tussle however took another turn on December 9, 2021. Femi Otedola announced in a letter addressed to the bank that he had acquired additional shares in the company which now gives him an ownership of 7.57% in the bank.

According to market operators, Otedola has the right to purchase additional shares from the secondary market if they are available in order to increase his holdings in the bank. However, a Spokesperson for the Nigerian Exchange Limited (NGX) stated that the NGX was not aware of the acquisition and was therefore unable to comment.

In the letter, it was seen that Otedola acquired these shares through his proxies Calvados Global Services, Primose Global Concept, Shetland Global, Wells Properties and Impetus Synergy. The letter read, “I have recently acquired additional shares in FBN Holdings Plc (the Company) which has brought my total stake to 7.57% of the issued shares capital of the company.”

After this acquisition, it has been revealed that Femi Otedola has now spent a huge amount of N44.8 billion on investment in FBN Holdings Ltd. Since he has announced the acquisition of 2.7 billion shares, the average price at which he has acquired the FBN Holding shares is N16.48 per share. In comparison, the share price closed at N11.6 per share yesterday.

This new purchase has formally solidified his status as the biggest shareholder of FBN Holdings, very well ahead of his biggest rival in the company, Tunde Hassan-Odukale who is the Chairman of First Bank. Tunde Hassan-Odukale and Femi Otedola have been going at each other since October, when the news of Otedola’s share acquisitions became public knowledge late in the month.

It would be interesting to see how Tunde Hassan-Odukale responds to Otedola’s new acquisition. Following the trajectory of the power tussle, it would be unsurprising to see Hassan-Odukale either announce some new shares or begin the process of acquiring additional shares. However, at the moment Femi Otedola remains the man witrh the title of biggest shareholder.

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Facebook CEO Mark Zuckerberg Loses 400% of Dangote’s Net Worth in 2022

Mark Zuckerberg’s net worth has nose-dived by more than 50 percent this year, losing over $70 billion



Mark Zuckerberg - Investors King

Facebook Founder and Meta Chief Executive Officer (CEO), Mark Zuckerberg’s net worth has nose-dived by more than 50 percent this year, losing over $70 billion.

Mark Zuckerberg’s net worth has plummeted very hard this year amid huge investments in the metaverse. 

In April 2021, Facebook said it had spent around $10 billion on metaverse investments while more than 10,000 people are working on its metaverse projects.

According to Bloomberg’s Billionaire Index, Zuckerberg started 2022 with a fortune of $125 billion but has since fallen by 55 percent to $55.3 billion this year. 

Zuckerberg’s Facebook started in 2021 with a lot of enthusiasm and hope. In 2021, Facebook was rebranded to Meta as the parent company while Mark disclosed that Facebook will invest heavily in Metaverse. 

Facebook however steeped in controversy with Frances Haugen’s leaked information. At the end of the 2021 financial year, the company reported its first-ever decline in users. 

Mark Zuckerberg lost in 2022 so far which stands at $70 billion is four times the net worth of Africa’s richest man, Aliko Dangote. Aliko Dangote is worth $18.8 billion according to Bloomberg’s Billionaire Index.

Zuckerberg’s net worth of $55.3 billion placed him at number 20 on the billionaire index, far below Elon Musk’s net worth estimated at $268 billion. 

The 38-year-old billionaire, who also doubled as the owner of WhatsApp, Instagram and Occult, however believed that the company’s investment in the metaverse space will be worth it in the near future. 

“The metaverse business for us isn’t really going to be a meaningful contributor to the business until at a minimum much later in this decade, and probably realistically this decade is going to be about setting the foundation for that and then the 2030s are really where this is going to contribute a lot to the profits of this company,” Zuckerberg said during the company’s annual shareholder meeting in May.

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Gautam Adani Displaces Amazon Founder, Jeff Bezos as World’s Second Richest Person

Indian business magnate Gautam Adani has displaced Amazon founder Jeff Bezos to become the second-richest person in the world with an estimated wealth of $146.8 billion.



Gautam Adani

Indian business magnate Gautam Adani has displaced Amazon founder Jeff Bezos to become the second-richest person in the world with an estimated wealth of $146.8 billion.

According to Bloomberg, Gautam Adani is the first individual from Asia to rank in the top three of the billionaire’s index while Tesla Founder and CEO Elon Musk continue to be the world’s wealthiest individual with an estimated $263.9 billion.

Adani has witnessed a rapid increase in his wealth this year displacing Mukesh Ambani, Bill Gates, and Warren Buffet on the Bloomberg billionaire list. 

Adani owns shares in six publicly traded companies that operate in ports, airports, green energy, and data centres.

While several others on the Bloomberg billionaires index have shed wealth so far this year, Gautam Adani has added more than $60 billion to his fortune in 2022 alone. 

Investors King learnt that before February 2022, Gautam Adani was ranked below fellow Indian billionaire Mukesh Ambani who is worth $93.4 billion and is currently at the eighth position on the global ranking.

Adani controls Mundra Port which is India’s largest seaport. 

Around September 2020, he also acquired a 74% stake in Mumbai International Airport which is India’s second-busiest airport. This makes him the country’s biggest airport operator. In 2022, he also acquired Swiss giant Holcim’s cement business in India for $10.5 billion.

Strategically, Adani has set a big eye on green energy. He said he will invest up to $70 billion in renewable energy projects in his bid to become the world’s largest producer of green energy. It is not a surprise that shares in his renewable energy firm have spiked while shares in his power company, Adani Power have increased three-fold in the last year in response to rising energy demand.

Gautam Adani is a college dropout who spurned his father’s textile shop to set up a commodities export firm in 1988. He survived the terrorist attack in Mumbai’s Taj Mahal Palace Hotel in 2008. He is 66 years old and happily married with two kids.

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Abdulsamad Earns N90.868 Billion in 24 Hours

Nigeria’s third richest person and leading philanthropist, Abdulsamad Rabiu earned N90.868 billion in the last 24 hours.



Abdul Samad Rabiu

Nigeria’s third-richest person and leading philanthropist, Abdulsamad Rabiu earned N90.868 billion in the last 24 hours.

Rabiu, 62, owns 16.173 billion or 89.85% direct shares in BUA Foods Plc and another 500.485 million or 2.78% in indirect shares in the company.

Together, the billionaire philanthropist owned a combined 16.673 billion or 92.63% shares in BUA Foods Plc.

On Friday, the stock of BUA Foods appreciated by N5.45 or 10% from N54.50 it closed on Thursday to N59.95 a unit on Friday.

Meaning, Rabiu’s holdings in the company grew by N90.868 billion in the last 24 hours if his total shareholdings of 16.673 billion is multiplied by the N5.45 gain realised on Friday.

BUA Food reported a N168.855 billion turnover in the first half (H1) of 2022, representing an increase of 11.29% from N151.731 billion recorded in the same period of 2021.

The company’s gross profit rose by 1.79% to N52.066 billion, up from N51.151 billion achieved in the corresponding period of 2021.

Therefore, BUA Foods realised 10.78% in profit after tax to declare N42.702 billion for the period under review.

Presently ranked 5th richest person in Africa and 350th in the world, Rabiu is the founder of BUA Group, a Nigerian conglomerate active in cement production, sugar refining and real estate.

The billionaire owns about 96% of BUA Cement Plc, one of Nigeria’s leading cement manufacturing companies, estimated at N1.79 trillion.

Explaining how he grew BUA Cement to the point of listing, Rabiu said “Two years ago, we listed our cement businesses. We had endorsement and Sokoto cement and those businesses were listed, we consolidated the business and we now have BUA Cement PLC with a combined capacity of 11 million tonnes as it is, we are set to rise to 17 million tonnes per annum by the middle of next year with the commissioning of new plants next year.

“And also, we consolidated our foods businesses across all our divisions: the flour milling; the sugar refinery; the oil milling and what have you. I listed that in January 2022 with that, we have a market capitalisation of over N1trn.”

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