By John Ikani
Oba Otudeko, the chairman of the Nigerian conglomerate Honeywell Group, has completed the acquisition of the First Bank of Nigeria Holdings (FBNH) with the largest shares totalling 4.7 billion.
With the acquisition, Mr. Otudeko dislodged Nigerian billionaires Femi Otedola and Mike Adenuga to become the largest shareholder of the Nigerian oldest financial institution.
Honeywell Group in a “disclosure of shareholding” sent to FBN Holdings Plc on Friday said “We write on behalf of Barbican Capital Limited, an affiliate of Honeywell Group Limited, and refer to the provisions of Sections 119 and 120 of the Companies and Allied Matters Act 2020 (as amended).
“In addition to the previously disclosed interests by Honeywell Group Limited’s affiliates, kindly take this as notification that, as of 7th July 2023, Barbican Capital Limited has acquired an aggregate of 4,770,269,843 shares in FBN Holdings Plc. Kindly accept the assurances of our highest regards. Yours faithfully, Yewande Giwa Head, Governance & Sustainability.”
FBN Holdings Plc has acknowledged the acquisitions made by Honeywell Group Limited.
In a letter signed by the acting company secretary, Adewale Arogundade, the company stated, “This is to inform the public and our stakeholders that the Company received a notification dated July 7, 2023, from Honeywell Group Limited that its affiliate, Barbican Capital Limited, has acquired an aggregate of 4,770,269,843 units of shares from the Company’s issued share capital of 35,895,292,791, as at the above-referenced date. Based on the foregoing, the equity stake of Barbican Capital Limited in the Company is 13.3%.”
The acquisition of 4.7 billion shares at a rate of N19 per unit marks the largest volume of First Bank shares traded in a single day since 2012 when the stock exchange started publishing data.
This significant purchase has increased Mr. Otudeko’s shareholding to 14 percent of the bank’s outstanding market value.
Oba Otudeko previously held the position of chairman of First Bank until 2019.
In 2021, Mr. Otedola became the bank’s single largest shareholder after a tussle with Hassan Odukale, who was also vying for control of the bank following Mr. Otudeko’s exit.
As Mr. Otudeko now leads the battle for the control of First Bank of Nigeria Holdings Plc with a 14 percent shareholding, Mr. Otedola drops to second with nine percent.
Messrs Odukale and Adenuga are joint third, each with a seven percent shareholding, while Saheed Arisekola holds the fourth position with a five percent shareholding.
In May 2022, Mr. Otudeko sold Honeywell’s shares worth N22 billion to repay longstanding debts to FBNH.
Subsequently, Flour Mills Nigeria Plc, a Nigerian agro-allied group led by Greek investor John Coumantaros, announced the acquisition of a 71.69 percent stake in Honeywell Flour Mills.
In addition, Flour Mills Nigeria Plc acquired a 5.06 percent stake in the company for N4.2 ($0.01011) per share after months of negotiations and proper preparation of documentation.
