Billionaire sells 25% stake in Nigeria’s oldest banking group through off-market transaction; buyer yet to be disclosed
Nigerian billionaire businessman Oba Otudeko has divested his significant stake in First Bank Holding Company Plc (First HoldCo), completing a N323.3 billion block sale of shares through the Nigerian Exchange’s negotiated window.
The transaction, executed on Monday, involved the sale of approximately 10.43 billion ordinary shares in First HoldCo at an average price of N31 per share, according to trade data from the Nigerian Exchange Limited (NGX). The shares, sold in 17 negotiated, off-market deals, represent a 25% ownership stake in the financial holding company, which has about 41.87 billion outstanding shares.
Market analysts described the deal as one of the largest single transactions in recent years in Nigeria’s financial services sector.
The NGX’s negotiated window enables parties to agree on the price and terms of large-volume trades ahead of execution, offering a mechanism to minimize market disruptions that such sizeable transactions might otherwise cause.
While the identity of the buyer has yet to be officially disclosed, regulatory filings are expected to follow in accordance with NGX and Central Bank of Nigeria (CBN) requirements. Under Nigeria’s banking laws, any significant change in shareholding of a banking institution requires scrutiny and approval by the CBN to ensure compliance with ownership and fit-and-proper guidelines.
Otudeko’s exit from First HoldCo marks a turning point in his longstanding association with the institution, which is Nigeria’s oldest banking group and one of its most recognizable financial brands.
Industry observers suggest the transaction could pave the way for new strategic investors to influence the company’s future direction, especially amid ongoing reforms in the Nigerian banking sector.
Efforts to reach representatives of Honeywell Group, Otudeko’s investment vehicle, for comment were unsuccessful as of press time.
As regulatory reviews commence and details of the buyer emerge, the market’s focus now shifts to the implications of this ownership change on First HoldCo’s strategy, governance, and competitive position in Nigeria’s dynamic banking industry.
