Oba Otudeko fights back, takes over First Bank from Otedola

Honeywell Group, owned by Oba Otudeko, notified the Securities and Exchange Commission of acquiring additional equity of almost five billion shares of First Bank of Nigeria.

The acquisition notice was also sent to FBN Holdings via a Honeywell Group affiliate, Barbican Capital Limited.

A statement on Honeywell's website said that the company had notified FBN Holdings and regulatory authorities of the acquisition of 4,770,269,843 shares of FBN by its sister company, Barbican Capital Limited.

The purchase is in addition to previously disclosed interests by HGL's affiliates.

The statement reads: "HGL holds its investments for the long term, working closely with all stakeholders to foster the creation of enhanced value for all.

"The investment is consistent with HGL's mission to create, build and invest in great businesses that deliver enduring value and improve lives."

There have been speculations that multiple sources had identified Honeywell Group as the buyer of the 4.7 billion shares of First of Nigeria Holdings which happened in a cross deal on Thursday, July 6, 2023.

BusinessDay reports that the shares of Otudeko, which he bought for N87.8 billion at N19 per unit, are the most significant volume of First Bank shares traded in a single day since 2012 when the stock exchange began releasing data to the public.

The purchase also constitutes 13% of the bank's outstanding market value.

Otudeko was First Bank's Chairman until 2019, making a swift comeback to emerge as FBN Holdings' single largest shareholder by a mile.

Billionaire businessman and investor Femi Otedola was once the bank's single largest shareholder in 2021 during a much-publicized tussle with Hassan Odukale, who was also competing for control of the bank after a leadership gap emerged following Otudeko's exit.

Sources reveal that Otudeko is buying back the shares of FBN Holdings via the money he made from the sale of Honeywell Flour Mill.

Flour Mill is the biggest miller by market capitalization and bought Otudeko's Honeywell Flour Mills last year in a deal worth N82 billion.

According to sources, Otudeko held 1.49% of First Bank shares in 2021. Still, information reveals that he now has significantly higher equity via associated entities, leading to his recent smooth ascent to the top.

Otudeko's proxies on FBN's board were sacked unceremoniously by the suspended Governor of the Central Bank of Nigeria, Godwin Emefiele, in an alleged dealings between FBN and Heritage Bank and the resolve of former directors to follow suggestions by CBN.