Otedola spends N77.6bn to cement control of First HoldCo
Billionaire investor Femi Otedola has acquired a N77.6 billion block of shares in First HoldCo, signalling confidence in the bank's recapitalisation and deterring potential hostile bidders.
Billionaire investor Femi Otedola has acquired a N77.6 billion block of shares in First HoldCo Plc, moving to consolidate his controlling position in the Nigerian financial services group. The transaction, executed on Wednesday July 22 through his primary investment vehicle Calvados Global Services Limited, involved the purchase of 706,131,179 shares. The shares were picked up on the floor of the Nigerian Exchange Limited at a price of N109.88 per share.
The acquisition represents the latest tranche in a multi-tranche acquisition strategy designed to entrench Otedola as the undisputed dominant equity holder. By utilising Calvados Global Services to absorb this substantial block of stock, the group chairman is effectively building a defensive moat. The move is explicitly aimed at insulating First HoldCo from potential hostile takeover threats during a period of structural change in the sector.
Recapitalisation signal
This aggressive accumulation of shares occurs against the backdrop of First HoldCo’s broader recapitalisation exercise. Otedola’s willingness to deploy personal capital at scale serves as a strong endorsement of the holding company’s capital roadmap. This is a calculated signal directed at both the domestic exchange and international institutional investors who may be evaluating the bank's equity.
The market has already priced in Otedola’s involvement and confidence. Year to date, First Holdco stock has risen by circa 120 percent. Looking forward, this latest purchase is poised to catalyse broader institutional buying and shore up liquidity in the stock, providing a more stable base for the bank's equity.
Strategic pivot
Beyond defensive positioning, the massive equity purchase is engineered to support an ambitious operational shift. Otedola intends to leverage the newly strengthened balance sheet to accelerate First HoldCo’s pivot toward high-margin digital banking and tier-one corporate banking opportunities.
The chairman's long-term vision centres on driving balance-sheet growth, enhancing corporate governance, and unlocking long-term shareholder value across the financial group. For existing and prospective investors, the N77.6 billion trade confirms that the dominant shareholder is willing to back this strategic pivot with substantial personal capital, mitigating execution risk during a critical recapitalisation phase.
