First HoldCo Plc has disclosed plans to offload a 25 per cent equity stake recently transferred to RC Investment Management Ltd., marking a new chapter in its ownership structure following the exit of major shareholder and former FirstBank chairman, Oba Otudeko.
The announcement was made by the Managing Director of First HoldCo, Wale Oyedeji, during a recent investor conference call in Lagos. “We will be disposing of those shares, and there are a range of options available to us,” Oyedeji said, adding that the shares would eventually be sold on the open market, although no timeline was provided.
The stake, previously held by Barbican Capital Ltd., was transferred in July through an off-market transaction to RC Investment Management Ltd. The block deal, which involved 10.43 billion ordinary shares—equivalent to 25 per cent of First HoldCo’s total outstanding shares—was executed across 17 negotiated trades at an average price of N31 per share, amounting to N323.33 billion.
According to Bloomberg, Oyedeji described RC Investment as a temporary vehicle, emphasising that the share divestment had no bearing on the company’s ongoing capital raise. “Our capital raise is progressing as planned,” he stated.
The Nigerian Securities and Exchange Commission (SEC) had previously raised concerns over the transparency surrounding the beneficial ownership of RC Investment Management. The ongoing divestment is expected to address lingering questions about First HoldCo’s ownership structure, a matter that has drawn scrutiny from both investors and regulators amid broader calls for enhanced corporate governance.
In line with the Central Bank of Nigeria’s revised minimum capital requirements for banks, First HoldCo is intensifying efforts to bolster its capital base. The firm plans to raise N350 billion in fresh equity through private placements in the current quarter, building on the momentum of a successful N147 billion rights issue earlier this year.
At its most recent Annual General Meeting, shareholders of FBN Holdings—now rebranded as First HoldCo—approved the N350 billion capital raise and endorsed the company’s name change. The resolutions have since been filed with the Nigerian Exchange Limited. Additionally, a dividend of 40 kobo per 50 kobo share, totalling N14.36 billion, was declared for the 2023 financial year.
Otudeko’s exit from the group followed the July block transaction, which also involved entities linked to another former chairman, Tunde Hassan-Odukale. The transaction sent ripples through the Nigerian Exchange, with data from CardinalStone Securities indicating that the deal boosted daily market volume by 807.03 per cent to 11.67 billion units, while total value traded jumped by 1,028.44 per cent to N363.41 billion. First HoldCo’s stock price surged to a 52-week high of N36.45 in the wake of the transaction.
With the divestment process underway and a capital raise in motion, First HoldCo appears poised for a significant reshaping of its investor base and a renewed focus on meeting regulatory benchmarks and long-term growth targets.
