Femi Otedola, wey be di fourth richest billionaire for West Africa, don finally break im silence about im plans for First HoldCo. For interview wey Nairametrics publish on Monday, di businessman talk say im investment philosophy na to always dey acquire controlling stake for any company wey im believe get potential for transformation.
Otedola, wey don become di largest shareholder for First HoldCo, yarn say: “If you look at my antecedents, my investment threshold is always over and above 51%.” Im also add say im dey follow di same strategy for First HoldCo.
First Bank, wey dem found for 1894, na one of di oldest financial institutions for Africa. Di bank don see plenty wahala for di past, including governance fights and regulatory intervention, but e don begin to recover strong for recent years.
Di billionaire don make big moves for di market. On July 22, im buy more than 706 million shares for First HoldCo. Di purchase worth almost ₦300 billion, wey be about $216 million. This one don make im total investment increase to pass ₦600 billion, approximately $432 million.
Otedola talk say: “That figure speaks not to speculation but to unflinching confidence in the institution’s future and my unwavering commitment to its success.” E say im commitment no be just for investment, but e dey for di bank for long term.
Dis na di same playbook wey im use for Forte Oil and Geregu Power. For Forte Oil, im take controlling share before im restructure di company and later exit. For Geregu Power, im own about 95% before dem list am for Nigerian Exchange, and e don become one of di largest power companies for di country.
But for First HoldCo, Otedola say dis one na different. E describe am as “a generational investment,” wey mean say im no get plan to comot any time soon.
Di move come at a time wey Nigeria banking sector dey face big changes. Di Central Bank of Nigeria don push banks to increase dia capital, and many banks dey attract fresh investment. Higher interest rates don also make banking stocks dey hot for investors.
First HoldCo don benefit from dis. Di group report sharp increase for im first-half earnings dis year, wey help restore confidence for one of di country’s most important financial institutions. Otedola’s increasing ownership na one of di strongest signals say di bank get bright future.
But e no easy to own more than half of First HoldCo. To reach di 51% threshold, im go need to buy plenty more shares. And because di bank be systemically important, any major ownership change go attract regulatory scrutiny. Industry observers say if im eventually take control, e go be one of di biggest corporate transactions for Nigeria for recent years.
Whether Otedola go fit achieve dat dream no clear. But one tori be say im don already commit more than $430 million of im own money, and im don make im intention public. All eyes don dey on am as we dey watch to see weda im go finally take control of one of Africa’s oldest banking institutions.
