The recent acquisition of 13.3% shareholding in FBN Holdings by a former Chairman of the bank, Oba Otudeko, may yet unravel, as the Central Bank of Nigeria (CBN), has not approved the transaction.
“CBN’s prior approval and no Objection shall be sought and obtained before any acquisition of shares of a bank (including through the capital market), that would result in equity holding of five per cent (5%) and above, by any investor,” according to the CBN.
“Where the CBN has an objection on any acquisition as stated in Section 20.2.b above, notice of the objection shall be communicated to the bank, and the bank shall notify such investor(s) within forty-eight (48) hours.”
Last week, FBN Holdings said that Honeywell Group affiliate Barbican Capital Limited bought an aggregate of 4,770,269,843 units of the Holdco.
With the new acquisition, FBNH said “the equity stake of Barbican Capital Limited In the Company is 13.3 percent.
Both Honeywell Group and Barbican Capital Limited are majorly owned by Otudeko, who was a former chairman of First Bank
Previously the chairman and leading shareholder of FBN Holdings, Otudeko was removed from his positions by the central bank in April 2021.
Nigerian billionaire Femi Otedola became the largest shareholder in the company that same year, with substantial influence on FBN Holdings’ board.
However, Otudeko has once again become the largest shareholder in the bank, setting the stage for a potential battle for control among major shareholders of Nigeria’s oldest bank.
Following Otudeko’s recent acquisition of FBN shares, estimated to represent a 13% stake, he now holds the top shareholder position in the financial services group.
Major shareholders, including Otedola, Mike Adenuga, Oye Hassan-Odukale, and the family of the late tycoon Alao Arisekola, reportedly convened to discuss how to respond to Otudeko’s emergence as the bank’s primary equity holder.
These shareholders are exploring options to swiftly resolve the issues stemming from the share acquisitions and Otudeko’s bid to regain control, potentially securing his representation on FBN Holding’s board.
The current board was appointed by the Central Bank of Nigeria (CBN).