Connect with us

Hot News

Nigerian billionaire Femi Otedola acquires significant stake in First Bank of Nigeria Holdings

Otedola remains one of Nigeria’s wealthiest businessmen, who has conquered industries ranging from banking to oil and gas.

Published

on

Nigerian billionaire Femi Otedola. ©Billionaires.Africa

Nigerian billionaire Femi Otedola has acquired a significant stake in the leading Nigerian bank First Bank of Nigeria Holdings (FBNH) in a deal worth N35 billion ($85 million) or more.

FBNH is the holding company that owns the leading Nigerian bank, First Bank of Nigeria Limited.

According to reports, the billionaire made the acquisition through his investment vehicle, Calvados Global Services Limited, which was at the forefront of his sale of a 75-percent stake in Forte Oil Plc to Prudent Energy in 2019.

The stake that he acquired in FBNH was confirmed by stockbrokers to be between eight and 12 percent, making him the largest shareholder in the tier-1 Nigerian bank ahead of fellow billionaire Mike Adenuga, Nigerian tycoon Obafoluke Otudeko, Tunde Hassan-Odukale and Remi Babalola.

The acquisition sent FBNH’s market cap above the $1-billion mark

FBNH has a free float unit of 35,773,669,647 ordinary shares, which translates to 99.67 percent of the company’s issued shares.

Otedola’s acquisition of the stake has sent the holding’s share price up by more than 60 percent in the past 28 days. Its market capitalization skyrocketed from a valuation of N267.4 billion ($650.6 million) on Sept. 24 to N440 billion ($1.07 billion) as of the time of writing.

Experts believe Otedola paid between N35 billion ($85 million) and N40 billion ($97 million) for the stake, as he was able to average down the acquisition cost by buying shares in low-price ranges and picking up declining volumes at higher prices, a rare technique in high-level trade management.

What this means for First Bank of Nigeria and the financial services industry

The deal will see Otedola become a dominant force in the Nigerian banking industry, alongside bank owners like Jim Ovia of Zenith Bank, Tony Elumelu of United Bank for Africa and Herbert Wigwe of Access Bank.

First Bank of Nigeria Limited is one of the top five banks in Nigeria, Africa’s largest economy. As of June 30, the bank was the fourth-largest in the country, with total assets valued at N8.02 trillion, eclipsing Guaranty Trust Holdings, whose assets are valued at N5.02 trillion.

The decision to acquire the stake in FBNH aligns with Otedola’s interests in the Nigerian banking industry. Before the acquisition, he held stakes in numerous Nigerian banks over the years.

As of 2007, when he acquired an additional 29.3-percent stake in African Petroleum through Zenon Petroleum, the billionaire invested massively to become the largest shareholder in a number of banks, including Zenith Bank and United Bank for Africa.

Otedola played a key role in making Forte Oil (formerly African Petroleum) a dominant player in the Nigerian downstream oil industry until he sold his stake to Prudent Energy in 2019.

In this same vein, Otedola is expected to bring fresh ideas to drive forward the bank’s growth. The billionaire will deploy his many years of managerial experience in the Nigerian banking sector to create increased value for shareholders and usher in technological innovations.

The acquisition opens up the debate on who will become FBNH’s next chairman

Otedola remains one of Nigeria’s wealthiest businessmen. It is difficult to provide an accurate assessment of Otedola’s net worth, as he owns businesses across the shipping, real estate and finance sectors, aside from his positions in the Geregu Power Plant and Zenon Petroleum.

The latest acquisition, which makes him the largest shareholder in FBNH, has sparked a fresh debate among investors and stock traders as to who the next chairman of the holding company will be, as Otedola now holds the highest voting power in the bank.

Recall that earlier this year the Central Bank of Nigeria sacked Obafemi Otudeko as chairman of FBNH and Ibukun Awosika as chairman of First Bank of Nigeria Limited.

Subsequently, the apex bank appointed Remi Babalola as chairman of FBNH and Tunde Hassan-Odukale as chairman of First Bank of Nigeria Limited.

Hot News

Nigerian billionaire Tony Elumelu loses more than $4 million in 36 days

UBA is a leading Nigerian financial group with operations in 20 African countries, as well as the UK, United States and France.

Published

on

Nigerian billionaire Tony Elumelu.

Nigerian businessman and multimillionaire philanthropist Tony Elumelu has recorded a N1.67-billion ($4.06 million) loss in the past 36 days from his stake in one of Nigeria’s leading financial services groups, United Bank for Africa Plc (UBA).

UBA is a leading Nigerian financial services group with operations in 20 African countries, as well as the UK, United States and France.

The pan-African bank ranks among Nigeria’s largest lenders. It operates under Elumelu, the billionaire businessman who holds a 6.96-percent stake in the group, deriving a total wealth of N18.8 billion ($45.8-billion) from his position.

The recent decline in the value of his stake can be linked to a single-digit drop in UBA’s share price on the Nigerian Exchange, as investors trimmed down their stake in the tier-1 lender.

As of press time, Dec. 4, shares in UBA were worth N7.9 ($0.01924) per share, 63-basis points lower than their opening price yesterday morning, Dec. 3.

Data gathered by Billionaires.Africa revealed that shares in the leading lender as of the opening of business and trading on Oct. 29 were worth N8.6 ($0.02094) per share.

Portfolio-rotation activities by investors who trimmed down their holdings in the bank caused its share price to slump by more than eight percent to N7.9 ($0.01924) per share as of the time of writing, accruing a total of N23.9 billion ($58.3 million) in losses for the bank and its shareholders.

While the market value of Elumelu’s 6.96-percent stake declined from N20.48 billion ($49.86 billion) to N18.81 billion ($45.8 million), this translates to a N1.67-billion ($4.06 million) loss for the Nigerian businessman in the past 36 days.

So far this year, the valuation of UBA and the market value of Elumelu’s stake in the bank is down by nearly nine percent.

Elumelu, who holds more than 2.3 billion shares in the pan-African bank, has earned a total of N1.72 billion ($4.18 million) in dividends from his stake.

The multimillionaire philanthropist recently paid out a total of $24.75 million in funding support to 4,949 entrepreneurs in Africa in line with his commitment to empower entrepreneurs on the continent.

Continue Reading

Hot News

Egypt’s Ghabbour family gains $15.8 million in 11 days as shares in GB Auto rebound

The wealthy Ghabbour family holds a majority 62.9-percent stake in the leading auto manufacturer.

Published

on

Businessman Raouf Ghabbour.

Egypt’s Ghabbour family has gained EGP247.73 million ($15.8 million) in the past 11 days from their stake in GB Auto.

GB Auto is an Egyptian manufacturer of automobiles, buses, trucks and motorcycles founded by   Kamal and Sadek Ghabbour in 1960. Since then, the company has grown into the largest automobile manufacturer in Egypt under the Ghabbour Group.

The wealthy Ghabbour family holds a majority 62.9-percent stake in the leading auto manufacturer.

The recent gain in the market value of their stake can be linked to the performance of the company’s shares in the past 11 days as investors renewed interest in the automaker after its share price on the Egyptian Stock Exchange plummeted below EGP3.7 ($0.232) per share.

Data retrieved by Billionaires.Africa revealed that shares in the Egypt-based automaker were worth EGP4.01 ($0.255) per share as of press time, Dec. 4, 282-basis points higher than their opening price for the week.

As a result of the renewed buying interest in the automaker, its stock price soared by 10 percent from a valuation of EGP3.65 ($0.232) per share on Nov. 22, to a price of EGP4.01 ($0.255) per share as of the time of writing.

Meanwhile, the market value of the Ghabbour family’s stake in the automaker increased from EGP2.51 billion ($159.91 million) to EGP2.76 billion ($175.69 million), accruing total gains of EGP247.73 million ($15.8 million) for the family in 11 days.

So far this year, the valuation of GB Auto and the market value of the family’s stake in the company is up by nearly 21 percent.

The company’s stock performance in 2021 can be linked to its robust financial performance during the year.

Figures contained in its first-nine-month financial report for 2021 revealed that its revenue rose by 39 percent to EGP22.4 billion, while its net income increased by 59.8 percent to EgP1.01 billion.

The robust performance can be linked to the benefits that the company reaped from operational efficiency initiatives, operational leverage from higher revenues and the overall improved demand in the period.

Continue Reading

Hot News

Led by Ivorian banker Tiemoko Yade Coulibaly, Societe Generale Cote d’Ivoire loses $42.6 million in three days

Societe Generale Cote d’Ivoire SA is an Ivory Coast-based bank offering financial products and services.

Published

on

Businessman Tiemoko Yade Coulibaly.

Leading Ivorian bank Societe Generale Cote d’Ivoire has accrued XOF24.73 billion ($42.65 million) in losses for shareholders after its shares slumped by nearly seven percent in the past three days.

Societe Generale Cote d’Ivoire SA is an Ivory Coast-based bank offering banking and financial products and services to individuals and corporate institutions.

Under the leadership of its chairman, Ivorian banker Tiemoko Yade Coulibaly, the comapny operates as a subsidiary of the French multinational investment bank Societe Generale, which is headquartered in Paris, France. 

As of press time, Dec. 3, shares in the bank were trading at XOF10,705 ($18.46) per share, 4.5-percent lower than their opening price this morning on the Bourse Regionale des Valeurs Mobilieres, a regional stock exchange for companies in West African countries.

Data gathered by Billionaires.Africa revealed that shares in Societe Generale Cote d’Ivoire at the opening of business and trading this month on Dec. 1 were worth XOF11,500 ($19.83) per share.

Profit-taking activities on the regional bourse, as investors trimmed down their holdings in the bank, caused its share price to slump by nearly seven percent to XOF10,705 ($18.46) per share.

As a result of the decline in the bank’s shares, its market capitalization dropped from XOF357.78 billion ($616.95 million) on Dec. 1 to close the week at XOF333.04 billion ($574.3 million).

This resulted in a total value loss of XOF24.73 billion ($42.65 million) for the bank and its shareholders in just three days.

So far this year, the valuation of Societe Generale Cote d’Ivoire is up by more than 30 percent.

In the first nine months of its current financial year, the bank reported a 40-percent hike in its net income from the XOF34.65 billion ($60 million) that it posted last year to XOF48.44 billion ($82.8 million).

The surge in earnings can be linked to a contained growth in overheads and reasonable control over the net cost of risk despite the impact of the COVID-19 pandemic on its interest-bearing assets.

Continue Reading

Trending