Otedola, Odukale to battle again as First Bank moves to sell shares for additional capital

First Bank Holding Plc has indicated its intention to sell some of its shares as it bids to raise additional capital.

It is expected this will be one of the key subjects of discussion at the bank's Annual General Meeting (AGM) which is scheduled for August 15, 2023.

Report has it that the capital transaction is expected to be a way of Rights Issue but will be ultimately determined by the Directors, subject to obtaining the approvals of the relevant regulatory authorities such as Cenetral Bank of Nigeria and Securities Exchange Commission.

Rights issues are an offer by a company to its shareholders to buy more of their stocks at a specific price by a stipulated deadline.

Expectations from the upcoming AGM

Underwrite the Rights Issue on terms determined by the Directors, subject to approvals from relevant regulatory authorities.

Waive preemptive rights of shareholders to any unsubscribed shares under the Rights Issue in case of under-subscription.

Authorize the Directors to appoint professional parties and advisers and perform necessary actions to give effect to the above resolutions, including compliance with regulatory authorities' directives.

Amend Clause 6 of the Memorandum of Association of the Company to reflect the newly issued share capital of 22.435 billion by creating 8.974 billion Ordinary shares of 50 Kobo each.

Otedola, Odukale battle for leadership

Should First Bank go the way of a rights issue, it is expected that Hassan Odukale who recently usurped Femi Otedola to become the individual majority shareholder with a 14% stake, will likely want to add more.

Otedola who is the second individual majority shareholder will also have his eye set to add to his 9% shareholdings.