Femi Otedola, a major shareholder in FBN Holdings Plc (NGX: FBNH) has sold 773,000,000 shares of FBN Holdings Plc worth N8.58 billion.
This was contained in a series of FBN Holdings Plc Directors dealings published by the holding company, owners of First Bank Nigeria Limited. All the transactions happened 6th June, 2022 in Lagos Nigeria, at the Nigerian Exchange Limited.
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In the first transaction, 200,000,000 shares were sold at N11.10 per share, for a total sum of N2.22 billion.
In the second transaction, 120,000,000 shares were traded at N11.10 per share, for a total sum of N1.33 billion.
In the third transaction, 53,000,000 shares were exchanged at N11.10 per share, for a total sum of N588.30 million.
In the fourth transaction, 200,000,000 shares were exchanged at N11.10 per share, for a total sum of N2.22 billion.
In the fifth transaction, 200,000,000 shares were exchanged at N11.10 per share, for a total sum of N2.22 billion.
On October 22, 2021, it was confirmed by FBNH that Mr. Otedola Olufemi Peter and his nominee, Calvados Global Services Limited had acquired a total of 1,818,551,625 units of shares from the Company’s issued share capital of 35,895,292,791.
Based on the acquisition at the time, Mr. Otedola Olufemi Peter and his nominee held 5.07% equity stake in FBNH. He went on to acquire more shares in the company in the course of the year.
The 2021 audited financial statement of FBNH shows that Mr. Otedola directly and indirectly held 2,717,282,140 shares of the company, representing 7.57% equity stake.
At the time of publication of this report, there was no further notification of Directors dealings published by FBNH.
In the run up to the acquisition by Mr Otedola, the share price of FBNH rose from N7.50 on 22nd September 2021 to close at N12.10 a month later on 22nd October 2021.
The sale by Mr. Otedola is likely to send shock waves in the market and a drop in the price of FBNH share prices. At the end of trading on Tuesday, FBNH shares lost 3.11% to close at N10.90.
It is unclear at this time why Mr. Otedola is selling and who is buying.
FBN Holdings Plc is a well-diversified and one of the largest financial services organisations in Africa. It is structured along Commercial Banking, Merchant Banking, Capital Markets, Trusteeship, and Insurance brokerage.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur