A major shareholding change occurred at Nigeria’s oldest banking group, First Holdco Plc.

Key shareholder Oba Otudeko, exited the group in a N323.33 billion deal.

A total of 10.43 billion ordinary shares of First Holdco were swapped on the Nigerian Exchange (NGX) in 17 off-market, negotiated deals at an average price of N31 per share.

The transaction, valued at N323.33 billion, represented about 25 per cent majority stake in the group, which currently has 41.87 billion outstanding shares.

The negotiated trade window of NGX allows buyers and sellers with significant transactions to pre-arrange the terms, including price and transfer, outside the ordinary price discovery of the general market. Such transactions are then brought to the market for formal transfer and completion of ownership change.

Insider sources said the First Holdco shares traded yesterday were held by the Otudekos, who have been embroiled in ownership and customer tussles with the banking group.

There are three well-known major shareholders in the banking group- the Otudekos, Femi Otedola and Hassan-Odukale. Several other shareholders hold reasonably large but less than significant stake. A significant stake represents five per cent equity stake or more, according to extant rules.

However, the identity of the buyer remained unverified as at close of business as extant rules allow some extended period for filing of necessary documents on change of ownership.

The Central Bank of Nigeria (CBN) is required to screen and approve a new, significant investor in a Nigerian bank. Many stakeholders had called for negotiated settlement of the disagreements between the Otudeko, who had led the banking group through many significant phases of its history and a new generation of investors in the group led by Lagos billionaire, Mr Femi Otedola.

Otedola, now chairman of First Holdco, had acquired single, individual largest stake in the oldest banking group and started a turnaround, which had seen exit of many senior executives and court cases against many stakeholder-debtors.

The market reaction to the transaction was positive as First Holdco’s share price rose to about N32 per share, pushing the group’s market capitalisation above N1.3 trillion.

The off-market block trade boosted the market as total turnover on the NGX surged by 807 per cent to 11.67 billion shares worth N363.41 billion.

Market pundits said they had anticipated the ownership change, describing it as a new beginning for the banking group.

“It’s a well-known issue around the market that it would happen, “ a senior investment banker and multiple-asset stockbroker told The Nation.

Analysts said the transaction might be a much sought turning point for First Holdco, providing the group with a freedom to accelerate ongoing reforms. (The Nation)