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Femi Otedola Purchases Majority Interest in First Bank Holdings

Image: Femi Otedola.

There are strong indications that Femi Otedola, the founder and chairman of Geregu Energy Group, has acquired the bulk stake in FBN Holdings (FBNH).

According to a source who requested anonymity, Femi Otedola is behind a huge takeover of FBN Holdings' shares, which might end in him becoming the company's sole majority shareholder.

FBN and the Nigerian Exchange both informed Leadership that a politician's announcement would be made within the coming days.

Otedola's majority ownership of FBN company is close to being upturned, consistent with LEADERSHIP, after months of slow and meticulous purchase of the corporate shares on the ground of the Nigerian stock market.

The billionaire investor and turnaround specialist best known for taking up African Petroleum earlier this century and reworking it into a dominant player within the downstream space of the oil and gas sector, has been scooping up shares of the bank for months, gradually increasing his ownership and surpassing shares owned by the other single shareholder of the bank.

 Otedola has been acquiring the bank's shares through a vehicle called Calvados Global Services Limited. It's also possible that other vehicles related to Otedola are scooping up shares also. FBNH currently has 34.7 billion shares floating freely, indicating that it's held by a various set of shareholders. As a result, the shares are easy to get on the stock market.

According to reports, Otedola now owns quite 5% of the bank through proxies and investment vehicles, putting him on target to become the bank's single largest shareholder.

FBNH reported a profit after tax of N38 billion in the first half (H1) of the financial year ended June 30, 2021, up from N35 billion in the same period in 2020. Speaking about the company's H1 performance, group director, UK. stated "FBN Holdings delivered a resilient performance within the first half of the year, reflecting our recent specialization in strengthening the organization."

We remain committed to our strategic goal of driving further performance stability as well as delivering sustainable growth in the years ahead. In line with our expertise in revenue diversification, we continue to increase non interest income as we transition to a more transactions driven institution and implement innovative and technologically driven measures to improve overall efficiency.

Given the COVID-19 pandemic and, as a result, the low interests rate environment, macroeconomic and socioeconomic conditions remain challenging. While these factors had a negative impact on overall revenue generation, we are confident that FBNH will be able to navigate this challenging operating environment and continue to deliver sustainable innovative solutions that enhance customer experience while also deepening financial inclusion.

Image: Femi Otedola

Content created and supplied by: Homiex (via Opera News )

FBNH Femi Otedola Geregu Energy Group Nigerian Exchange Otedola

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