Shareholders of First Bank of Nigeria (FBN) Holdings lost about eight per cent of their investment on Wednesday, as the rift between Oba Otudeko and other majority shareholders took a toll on the firm.
This is according to the stock market performance of FBN Holdings on Wednesday, as the company’s share fell to N19.80 kobo, from N21.5 kobo per share.
Ripples Nigeria previously reported that Otudeko acquired 4.77 billion shares of FBN Holdings last week, handing him a 13.3 per cent stake in the company.
This made him the largest shareholder in FBN Holdings, above Femi Otedola, who became the largest shareholder in 2021 before Otudeko’s recent acquisitions, ahead of Hassan Odukale and Mike Adenuga.
While FBN Holdings publicly acknowledged Otudeko’s acquisition, his presence in the company wasn’t welcomed, and the board, representing the majority shareholders, have begun to find ways to prevent him from cementing his position in the firm.
The board fear some of them could lose their jobs, as the acquisition will lead to a reshuffle of the board, which Otudeko previously led as Chairman, before he was sacked by the Central Bank of Nigeria (CBN), for sacking the current Managing Director and Chief Executive Officer of the banking subsidiary, First Bank.
Also, Ripples Nigeria reported after Otudeko acquired the shares, Ecobank warned FBN Holdings against approving the investor as their largest shareholder.
Ecobank accused Otudeko of owing N13.5 billion, while declaring that should FBN Holdings approve the share acquisition of Otudeko, FBN Holdings will be aiding in the diversion of funds.
Amid the drama in FBN Holdings, shareholders are at the receiving end, as their investment fell by 7.9 per cent at the close of trading on Wednesday, a day after the Ecobank story was reported.
The drop represents a loss of N61.02 billion in the total investments held by FBN Holdings’ shareholders, Ripples Nigeria gathered.
It was also learnt that the total market valuation of FBN Holdings fell to N710.72 billion from N771.74 billion reported on Tuesday.
The drop in FBN Holdings’ share value indicates a decline in the confidence of the stock market investors in FBN Holdings, due to the blurry future caused by the disagreement between the largest and other majority shareholders, as well as the warning from Ecobank.
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