In a major corporate shakeup, First HoldCo Plc has confirmed plans to dispose of a 25% stake in the company, recently transferred to RC Investment Management Ltd., following the exit of Oba Otudeko, the influential business mogul and former chairman of FirstBank Nigeria.
The development marks a significant turning point in the governance and ownership structure of Nigeria’s oldest financial institution, as First HoldCo moves to stabilize investor confidence, enhance transparency, and meet new capital adequacy standards imposed by the Central Bank of Nigeria (CBN).
During a recent investor conference call in Lagos, Managing Director of First HoldCo, Wale Oyedeji, confirmed that the company is actively pursuing disposal options for the shares. The 10.43 billion ordinary shares—representing 25% of the firm’s outstanding stock—were transferred via an off-market deal from Barbican Capital Ltd., a firm previously linked to Otudeko, to RC Investment Management Ltd.
The transaction, valued at approximately ₦323.33 billion, was executed at an average price of ₦31 per share across 17 negotiated deals. Oyedeji described RC Investment as a “temporary holder” and noted that the shares would be sold in the market through appropriate channels.
“We will be disposing of those shares, and there are a range of options available to us,” Oyedeji stated. “Ultimately, you will see that those shares will be disposed of in the market.”
Though a specific timeline has not been announced, the planned divestment is part of a broader effort to clean up First HoldCo’s shareholder registry and assure regulators of the institution’s governance compliance.
The Securities and Exchange Commission (SEC) had earlier flagged concerns about the opaque identity of RC Investment’s beneficial owner. The planned share disposal is expected to address these concerns, allowing First HoldCo to restore investor trust and clear the regulatory clouds over its ownership structure.
Analysts say this move also distances the group from the boardroom tussles and ownership battles that have plagued it in recent years, particularly between shareholders linked to Otudeko and Tunde Hassan-Odukale, another former chairman.
First HoldCo is simultaneously progressing with its capital restructuring strategy, aimed at meeting the CBN’s new minimum capital requirements for banks. The group is currently preparing to raise ₦350 billion in fresh capital through private placements in the current quarter, following a successful ₦147 billion rights issue earlier this year.
These efforts were previously approved by shareholders during the company’s Annual General Meeting, where they also endorsed a legal and brand name change from FBN Holdings to First HoldCo. A dividend payout of ₦14.36 billion was also declared for the 2023 financial year, at 40 kobo per share.
The off-market deal that facilitated the RC Investment transfer had an immediate impact on the Nigerian Exchange (NGX). Data from CardinalStone Securities revealed that the transaction caused an 807.03% spike in trading volume, reaching 11.67 billion units, while total trade value soared by 1,028.44% to ₦363.41 billion.
Following the development, First HoldCo’s share price hit a 52-week high of ₦36.45, signaling positive investor sentiment about the anticipated resolution of governance issues and the firm’s recapitalization plans.
With the exit of Oba Otudeko and the impending disposal of a key 25% stake, First HoldCo appears to be entering a new era of strategic clarity and regulatory alignment. Market watchers are optimistic that the restructuring, combined with improved corporate governance, could position the group for expansion and long-term profitability amid Nigeria’s evolving banking landscape.