In the ongoing battle for control of First Bank of Nigeria Holdings Plc, Oba Otudeko’s Honeywell Group has made a significant move by purchasing 4,770,269,843 shares in a cross deal valued at N87.8 billion. This acquisition, which took place last Thursday at a price of N19 per share, represents the largest volume of First Bank shares traded in a single day since 2012 when the stock exchange began publishing data. As a result, Otudeko’s shareholding in the bank now stands at 14 percent of its outstanding market value.
A “disclosure of shareholding” letter was sent by Honeywell Group Limited to the Company Secretary of FBN Holdings Plc, indicating that Barbican Capital Limited, an affiliate of Honeywell Group Limited, had acquired the aforementioned shares. The letter, dated July 7, 2023, cited the relevant provisions of the Companies and Allied Matters Act 2020 (as amended). FBN Holdings Plc acknowledged the acquisitions in a response letter on the same day, confirming Barbican Capital Limited’s acquisition of 4,770,269,843 units of shares, which represents a 13.3% equity stake in the company.
With this strategic move, Otudeko, the former chairman of First Bank until 2019, is swiftly reclaiming his position as the single largest shareholder of the bank. Previously, billionaire Femi Otedola held the title in 2021 following a dispute with Hassan Odukale, who was also vying for control after Otudeko’s departure.
According to a source familiar with the matter, “Otudeko is flush with cash from the sale of Honeywell and is buying back the bank’s shares through entities linked to him.” As a result, Otudeko now leads the battle for control of First Bank of Nigeria Holdings Plc with a 14% shareholding, while Otedola drops to second place with a 9% shareholding. Hassan Odukale and Mike Adenuga share the third position, each with a 7% shareholding, and Saheed Arisekole holds the fourth position with a 5% shareholding.
Barbican Capital Limited, a subsidiary of Honeywell Group, was incorporated in March 2023, and persons with significant control of the firm are identified as Otudeko’s children. The 4,770,269,843 shares were acquired from 26 different accounts, including notable entities such as Flour Mills, Nigeria’s largest miller by market value.
This latest development intensifies the ongoing battle for control of First Bank, as stakeholders closely watch the shifting dynamics and potential outcomes in this ownership dispute.