By Charles Pemu 
LAGOS, NIGERIA – Contrary to earlier reports, emerging details clarify that the substantial N324 billion share acquisition in FBN Holdings Plc, the parent company of First Bank, was not by Mr. Femi Otedola, but by a trustee acting on behalf of the federal government. This intervention aims to resolve long-standing shareholder infighting and bolster the bank’s stability.
Sources familiar with the deliberations indicate that a trustee, established by the Office of the Attorney General (OAG) in collaboration with the Central Bank of Nigeria (CBN), facilitated the acquisition through a custodial arrangement. These shares are expected to remain with the trustee for the next two to three weeks, during which a strategic decision will be made regarding their future, including supporting FBN Holdings’ plan for a capital raise to meet CBN requirements.
The intervention follows persistent shareholder disputes, notably an infighting that led to Oba Otudeko being charged in Federal High Court by the Otedola-led FBN management. Concerned that the prolonged conflict could jeopardize First Bank’s ability to meet new capital requirements, the CBN, working with the Attorney General, initiated a non-legal resolution. This process ultimately led to the exit of Oba Otudeko and the Hassan-Odukale family, who voluntarily sold their holdings in exchange for the withdrawal of criminal complaints and prosecution by First Bank.
The significant transaction, valued at N324.47 billion for 10.47 billion units of shares, occurred on Wednesday, July 16, through off-market block trading on the Nigerian Exchange Limited (NGX). Oba Otudeko was compelled to sell over 20 percent of shares linked to him, while the Hassan-Odukale family divested five percent of their holdings.
The deal was executed at a fixed price of N31.00 per share. Following the transaction, First Bank’s stock price yesterday, Thursday, July 17, gained 9.9 percent to close at N32.2 per share. Findings confirm that 17 separate negotiated deals took place, with First Securities Ltd acting as the primary buyer. Sellers included CardinalStone Securities Ltd, Meristem Stockbrokers Ltd, Renaissance Capital (Rencap) Securities Ltd, Regency Asset Management Ltd, United Capital Securities Ltd, and Stanbic IBTC Stockbrokers Ltd, with First Securities Ltd also acting as a seller in some instances, possibly indicating portfolio adjustments.
This decisive action by the federal government, through its trustee, marks a critical turning point for one of Nigeria’s oldest and most prominent financial institutions, aimed at ensuring its stability and compliance amidst previous shareholder unrest.