Femi Otedola Divests From FBN Holdings, Sells Shares Worth N8 Billion

Femi Otedola, FBN Holdings Plc’s largest shareholder, has sold a combined 717,939,764 shares valued at N7.983 billion in five transactions, according to the management of the financial services company.

The lender disclosed in a statement signed by Adewale Arogundade, acting company secretary for FBN Holdings Plc and obtained by Investors King.

Otedola, who held a 7.57% stake in the lender, reportedly sold 200,000,000 shares he acquired directly under his name at N11.10 a unit or for N2.220 billion.

The billionaire sold another 170,000,000 he acquired through Primrose Global Concept on the same day at N11.14 a unit or N1.894 billion.

The divestment continued as Otedola disposed another 53,000,000 shares he purchased via Impetus Synergy and 120,000,000 shares bought through Wells Properties & Investment Company Limited at N11.10 a unit or N1.920 billion.

In the last transaction, Otedola sold 174,939,764 shares at N11.14 a share or N1.949 billion to bring the total shares divested and reported by the Nigerian Exchange Limited (NGX) to 717,939,764.

Prior to the divestment, Otedola holds a 7.57% equity stake in FBN Holdings Plc.  The billionaire was the company’s largest shareholder before divesting about 30% of his holding. Presently, Otedola holds about a 5% stake in the leading financial services company.

Otedola had aggressively purchased the shares at the peak of a power tussle over the largest shareholder between himself and Tunde Hassan-Odukale, the Chairman of First Bank and the Managing Director of Leadway Assurance Company Limited.

According to the Chief Operating Officer, InvestData Ltd, Mr. Ambrose Omordion is likely divesting into other businesses and needs fresh capital.

He said Otedola “had bought some stocks around N7-8.00, while some were brought around N13.00 per share. I think the billionaire has seen another opportunity and he decided to sell those shares. Mind you, he is not selling all the shares.”

However, the identity of the buyer is unknown. A transaction of this magnitude is usually acquired by high net worth individuals.

The disclosure is in line with the Securities and Exchange Commission policy on all insider dealings. Listed companies are required to disclose transactions of insiders, top equities holders in the company, to enforce transparency across the Nigerian Exchange Limited (NGX).