Otedola Linked to N323.4bn Block Deal as First HoldCo Share Ownership Shifts

Speculation is mounting over billionaire investor and current chairman of First HoldCo, Femi Otedola, and his potential involvement in a ₦323.4 billion block transaction involving the HoldCo’s shares.

The deal, one of the largest ever recorded on the Nigerian Exchange Limited (NGX), has attracted significant attention as the market awaits regulatory disclosure. Despite the size of the transaction, no official statement has been issued by First HoldCo or the NGX at the time of reporting.

Massive Share Movement Across 17 Negotiated Trades

According to transaction records obtained by The PUNCH, the block deal occurred on Wednesday, July 16, 2025, comprising 17 negotiated trades at ₦31 per share. Over 10 billion shares exchanged hands through multiple brokers, including:

• CardinalStone Securities

• Meristem Stockbrokers

• Rencap Securities

• United Capital Securities

• Stanbic IBTC Stockbrokers

• Regency Asset Management

• First Securities Ltd. (listed as buyer)

Key Sellers: Otudeko and Hassan-Odukale

Sources indicate that a majority of the shares originated from entities tied to Oba Otudeko and Tunde Hassan-Odukale.

• Oba Otudeko’s divestment totaled approximately 7.79 billion shares, broken down as follows:

  • 5.87 billion shares through Barbican Capital Limited

  • 1.52 billion via Peace Account GASL Nominee

  • 392.9 million shares via RAML/MEF9

• Tunde Hassan-Odukale’s divestment amounted to 2.28 billion shares, sold through:

  • 1.03 billion shares from Leadway Holdings Limited

  • 432.3 million via Leadway Assurance Company

  • 392.3 million from UBAPC/Leadway Pensure PFA Ltd-T

  • Additional shares from other Leadway-related pension and internal accounts

Otedola’s Stake and Speculated Consolidation

The transaction has stirred discussions among minority shareholders and market analysts, with growing speculation that Otedola may have acquired a significant portion, potentially giving him majority control of First HoldCo.

While some analysts argue that his stake remains at 11.8%—as reported in First HoldCo’s 2024 full-year financials—others believe the recent transaction points to a strategic consolidation of ownership.

Tunde Amolegbe, CEO of Arthur Stevens Asset Management Ltd, commented,

“Our understanding is that he [Hassan-Odukale] sold his shares to Femi Otedola. While there’s no formal documentation yet, market insiders have been aware of these negotiations.”

Amolegbe noted that the seller had ongoing legal issues with the bank, which likely expedited the decision to exit.

“The negotiations were essentially a way for him to divest and step away from the institution,” he added.

Regulatory Silence Raises Concerns

Despite the scale of the deal, the NGX has yet to release an official disclosure. NGX rules require that any transaction involving more than 5% of a company’s shares must be disclosed publicly.

“They’re still within the exchange’s timeline, but the lack of transparency is fueling the speculation,” Amolegbe noted.

A Pattern in First HoldCo’s History

Investment economist Vincent Nwani highlighted the event as part of a broader pattern within First HoldCo’s legacy.

“Every decade or so, First Bank sees a major ownership reshuffle. What we’re seeing—whether through asset swaps, negotiated exits, or silent acquisitions—is part of a power rebalancing. The chairman will naturally be aware of this.”

He emphasized that billionaires like Otedola typically do not stop at minority stakes, suggesting further consolidation is likely.

Nwani called on the Central Bank of Nigeria (CBN) to closely monitor developments to ensure minority shareholder rights are protected during the ownership transition.

Regulatory Implications: CBN’s Single Obligor Limit in Focus

A source who requested anonymity clarified that the transaction was not a new acquisition, but rather a strategic restructuring prompted by CBN’s updated Single Obligor Limit policy.

“This was not a regular market trade. The block transaction was structured to address regulatory forbearance requirements. It’s more about aligning with the CBN’s directives than a fresh purchase,” the source explained.

The CBN’s revised guidelines, issued on June 13, 2025, require banks to reduce exposure to large single borrowers and increase capital buffers. Banks under regulatory forbearance were instructed to:

• Suspend dividend payments

• Defer executive bonuses

• Halt offshore investments

These regulations have driven several banks and major stakeholders to reassess their capital structures and ownership arrangements.

Market Still Awaits Official Disclosure

Despite the magnitude of the ₦323.4 billion deal and growing speculation, no official filing has been made to the NGX as of press time. This silence has triggered concerns among investors and analysts, especially considering NGX’s disclosure rules for significant shareholding changes.

Until formal clarification is provided by either First HoldCo or the Nigerian Exchange, the true nature and beneficiary of the transaction remain uncertain