FBN Holdings Shares Soar Over 20% As Oba Otudeko’s Exit in N323bn Stake Transfer

Shares of FBN Holdings Plc (FirstHoldco), Nigeria’s oldest banking group, have surged more than 20% in just two trading sessions, fueled by growing investor speculation after a massive off-market transaction involving over 10.4 billion shares altered the company’s ownership structure.

The stock, which closed at N29.30 on Monday, July 14, jumped to N32.20 on Wednesday and climbed further to N35.40 in early trading on Thursday, July 17, amid a wave of buying activity triggered by the seismic share transfer.

The rally follows a major negotiated deal executed on Wednesday, July 16, on the Nigerian Exchange (NGX), where 10,433,909,058 units of FirstHoldco shares — representing about 25% of the company’s total 41.87 billion outstanding shares — were traded off-market at N31.00 per share across seventeen transactions. Valued at approximately N323.33 billion, the deal ranks as one of the largest block trades in the local bourse this year.

While the NGX negotiated trade window allows for large-volume pre-arranged trades outside the usual daily price discovery mechanism, all transactions are still cleared through the exchange to ensure regulatory compliance and transparency. Market watchers believe the volume and the precision of the deal signal a significant realignment of power within the bank’s ownership.

Prior to the transaction, FirstHoldco had three major known shareholders: billionaire businessman Oba Otudeko, industrialist Femi Otedola, and former First Bank chairman Tunde Hassan-Odukale. Several other investors hold sizable interests but fall below the 5% threshold required by the NGX to be classified as significant shareholders.

Now, fresh information points to RC Investment Management Limited, a little-known investment firm, as the new power bloc. The company, reportedly linked to one Samuel Babatunde Sule, is said to have acquired the entire 10.433 billion shares in the off-market transaction. RC Investment reportedly bought 7.787 billion shares from Barbican Capital and RAML — both associated with Oba Otudeko — and another 2.647 billion shares from entities related to Hassan-Odukale. The latter includes Leadway Holdings, Leadway Pensure PFA, Haskal Holdings, and Leadway/NNPC Staff Pension Investment.

The development marks a possible end to the long-standing rivalry between Otudeko and Otedola over control of FirstHoldco. Otudeko had, in 2023, mounted a surprise return to the shareholding register with a huge acquisition that temporarily tipped control in his favor. But with the latest transaction, Otudeko and Hassan-Odukale appear to have stepped aside for a new player whose motives and affiliations remain unclear to the broader market.

Market analysts suggest that the sharp rise in the company’s share price reflects investor optimism over potential governance changes or strategic direction that could come with the shake-up. However, some have cautioned that a lack of clarity about RC Investment’s backers or plans could introduce fresh uncertainty down the line.

Meanwhile, there are regulatory concerns that stoke interest. Under Nigeria’s corporate governance rules, any shareholder who acquires a 5% or more stake is required to make disclosures to both the exchange and the Securities and Exchange Commission (SEC). If RC Investment now holds 25%, its emergence will trigger new expectations of disclosure and possible changes to the company’s board structure.

The reshuffling also comes at a time when FBN Holdings is exploring strategic expansion and strengthening its balance sheet after recent macroeconomic headwinds. Investors, for now, are taking positions, betting that the transfer of such a large block of shares may unlock value or herald a new era for one of Nigeria’s most storied financial institutions.