In a tumultuous week for First Bank Nigeria Holdings, the three largest and majority shareholders, Oba Otudeko, Femi Otedola, and Tunde Hassan-Odukale, faced a massive combined loss of N24.64 billion. The losses came amidst reports of a conflict between the largest shareholder, Otudeko, and the other two majority investors, Otedola and Odukale.
The dispute emerged after Otudeko acquired a significant stake of 13.3% in the financial institution two weeks ago, leading to one of the biggest brawls in the banking sector recently. However, the majority shareholders were not receptive to Otudeko’s investment, and they reportedly attempted to oust him from the holding company.
This alleged conflict negatively affected the capital market’s sentiments, prompting investors to offload the company’s shares and profit-takers to capitalize on gains recorded in the first week of July when reports surfaced about a major investor buying considerable stakes in the company.
As a consequence, the share value of First Bank Nigeria Holdings declined from N23.3k per share on July 10, 2023, to N17.35 per share on July 17, 2023, representing a 14.53% decrease. This resulted in a significant N24.64 billion reduction in the total investment value held by Otudeko, Otedola, and Odukale.
Oba Otudeko faced the highest loss, with N14.07 billion wiped off his investment value, reducing it to N82.76 billion from N96.83 billion on July 7, 2023. Femi Otedola, holding a 5.57% share, suffered approximately N5.89 billion in losses, bringing his investment in the banking group to N34.68 billion. Tunde Hassan-Odukale’s investment in the bank also saw a decrease of N4.67 billion, leaving him with total assets of N27.52 billion in the holding company.
