Billionaire businessman and Chairman of First HoldCo Plc, Femi Otedola, has further increased his stake in the financial services group after acquiring additional shares worth N222.20 billion.
The latest purchase, made through his investment vehicle, Calvados Global Services Limited, was disclosed in a statement filed with the Nigerian Exchange (NGX) on Thursday.
The acquisition involved 1.77 billion shares and increased Otedola’s holding in First HoldCo from 9.99 billion shares to 11.77 billion shares.
His ownership consequently rose from 21.96 per cent to 25.88 per cent, according to the filing.
The transaction marks Otedola’s second major share purchase in First HoldCo in July, reinforcing his position as the company’s largest individual shareholder.
On July 22, Otedola acquired another 706.13 million shares valued at N77.58 billion.
With the latest purchase added to his previous holdings, Otedola’s total investment in First HoldCo is now estimated at about N1.47 trillion. The latest acquisition also brings his shareholding closer to the 30 per cent threshold that would trigger a mandatory takeover offer under Nigeria’s capital market regulations.
Under the Investments and Securities Act and rules of the Securities and Exchange Commission (SEC), a shareholder who acquires 30 per cent or more of the voting shares of a listed company is required to make a mandatory offer to other shareholders to acquire their shares.
Otedola’s latest investment comes as First HoldCo continues to attract strong interest from investors on the Nigerian stock market.
The financial services group recently overtook Zenith Bank to become Nigeria’s most valuable banking stock by market capitalisation, following a strong rise in its share price.
The continued increase in Otedola’s stake is being viewed as a sign of confidence in the long-term prospects of First HoldCo and its ongoing transformation and expansion in Nigeria’s financial services industry.
His latest investment further strengthens his influence in the group and could keep market attention focused on whether he will increase his holding further towards the 30 per cent regulatory threshold.
First HoldCo is the parent company of FirstBank Nigeria and other financial services businesses within the group.
The post Otedola raises First HoldCo stake to 26.01% with N222bn acquisition appeared first on The Sun Nigeria.
<small>Source: The Sun Nigeria — read the original story there.</small>