Billionaire investor and Chairman of First HoldCo Plc, Femi Otedola, has indicated that he intends to build a controlling stake of more than 51% in First HoldCo Plc, saying majority ownership is central to executing the reforms and restructuring needed to create long-term value.
Otedola disclosed this in an interiew noting that his investment philosophy has always been to acquire controlling interests in businesses.
According to him, his antecedents in this regard are evident in the successful transformation of Forte Oil Plc and Geregu Power Plc.
In the interview, Otedola spoke about his long-term ambitions for First HoldCo, where he currently owns about 25.8%, making him the company’s largest shareholder.
“I am sure that you can see from my antecedents that my investment threshold is always over and above 51%,” Otedola said.
He emphasized that maintaining firm shareholder control, while protecting minority shareholder interests, provides the support needed to implement difficult reforms and restructuring programmes.
“One of my key investment principles is that firm shareholder control with due regard for minority interest is a key ingredient to executing reforms and restructuring to deliver value to all stakeholders,” he said.
Otedola explained that he gradually increased his ownership in African Petroleum Plc, later renamed Forte Oil Plc, from 28% to 75% before selling the business in 2019.
He added that he followed a similar strategy at Geregu Power Plc, raising his stake from 51% to 95% before reducing it to 77% after the company’s public listing in 2022.
The billionaire investor said First HoldCo is following the same path.
“I am on the same trajectory with First HoldCo Plc,” he said.
Earnings Surge and Valuation Benchmark
The disclosure coincides with First HoldCo overtaking Zenith Bank Plc and Guaranty Trust Holding Company Plc (GTCO) to become Nigeria’s most valuable listed lender.
The holding company for First Bank of Nigeria closed with a market capitalization of ₦5.68 trillion ($4.10 billion) last week, compared to Zenith Bank’s ₦5.2 trillion and GTCO’s ₦4.7 trillion.
First HoldCo stock is up 257% in the past year.
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