Connect with us

Business

First Bank investors lose N53.84bn to Otedola, Hassan-Odukale leadership tussle

Published

on

FirstBank declares 2.99% drop in interest income of N327.5bn for Q3 2019

It seems First Bank’s attempt to douse the chaos around the lender in the capital market failed to sway investors confidence following the leadership tussle between Femi Otedola and Tunde Hassan-Odukale.

The company, in a swift fashion, released a statement ranking Hassan-Odukale as its majority stakeholder, shortly after announcing Otedola as its major shareholder – handing the control of First Bank to the Leadway Assurance boss.

Ripples Nigeria analysis shows the clarification didn’t stop investors’ total investment in First Bank from crashing by 11.95 percent in a space of five days, as prospectives priced the lender’s stock low, following minority shareholders sell off amid uncertainty surrounding ownership structure.

Otedola‘s short-lived position as the majority shareholder had swung investors confidence in favour of the lender, resulting to over 50 percent increase in investment value in the first two weeks of October.

But this gain was almost erased by the misinformation emitting from First Bank’s management in the last two weeks of same months – a case of First Bank shooting itself in the foot.

READ ALSO: First Bank Holdings GMD, U.K Eke, resigns amid leadership tussle between Otedola, Hassan-Odukale

The 11.95 percent decline in market value resulted from depreciation of stock value which dropped to N11.05 per share on Friday, from Monday’s N12.55kobo, as some shareholders took out their investment in First Bank.

The sell off caused investors to lose N53.84 billion in five days, after the exit forced First Bank’s market cap to dwindle to N396.64 billion at the end of trading on Friday, against Monday’s N450.48 billion.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Investigations