First Bank Shareholders Appoint Otedola As Director, Otudeko, Others Prepare To Fight For More Shares

The big names in First Bank of Nigeria Holdings Plc are getting set for a fresh round of scrambling for more stakes in the country’s oldest bank as the shareholders have approved an additional N150bn capital raise and an increase in its Issued Share Capital.

The shareholders have also appointed Femi Otedola as a Non-Executive Director and Oyewale Samson Ariyibi as an Executive Director of FBNH which was kicked against by some shareholders allegedly linked to the highest single majority shareholder Oba Otudeko.

The shareholders took the decision on Tuesday at the statutory Annual General Meeting of the company in Lagos.

The AGM took place against the backdrop of an order of interim injunction blocking the FBNH from holding its AGM.

The ex parte order of interim injunction with Suit No. FHC/L/CS/1575/23 – In the Matter of Olojede Adewole Solomon, Adebayo Oluwafemi Abayomi and Ogundiran Emmanuel Adejare vs. FBN Holdings Plc was served on Friday, August 11, 2023.

First Bank said it is lawyers filed and served the petitioners the notice of appeal challenging the suit.

Based on the resolution of the AGM, the shareholders approved a dividend payment in the “total sum of N17,947,646,398 (Seventeen Billion, Nine Hundred and Forty Seven Million, Six Hundred and Forty Six Thousand, Three Hundred and Ninety Eight Naira) which translates to 50 kobo per 50 kobo ordinary share of the company, subject to withholding tax, with the dividend payable on Wednesday, August 16, 2023 to members whose names appear in the Register of Members at the close of business on August 8, 2023 be and is hereby approved.”

FBNH Shareholders also approved increasing the company’s Issued Share Capital from N17,947,646,396 made up of 35,895,292,792 Ordinary shares of 50 (Fifty) Kobo each to N22,434,557,995 to N22,434,557,995 by the creation and addition of up to 8,973,823,198 Ordinary shares of 50 (Fifty) Kobo each.

The shareholders further approved N150bn capital raise through a rights issue.

With the approval for a capital raise, Otedola may target mopping up more share to overtake Oba Otudeko who is the single majority shareholder.

Otudeko through his vehicle Honeywell Group Limited (HGL) acquired 4.7 billion shares of FBN Holdings in July 2023.

Honeywell made the acquisition through Barbican Capita Ltd which elevated Barbican’s shares to 13.3 per cent as against Otedola’s 7.57 per cent shares in the company.

FBN Holdings announced, “This is to inform the public and our stakeholders that the Company received a notification dated July 7, 2023 from Honeywell Group Limited that its affiliate, Barbican Capital Limited has acquired an aggregate of 4,770,269,843 units of shares from the Company’s issued share capital of 35,895,292,791, as at the above-referenced date.

“Based on the foregoing, the equity stake of Barbican Capital Limited in the Company is 13.3 per cent.”

In December 2021, billionaire businessman, Otedola became the single largest shareholder of FBN after acquiring 7.57 percent of the issued shares capital.