Hassan-Odukale outguns Otedola, buys FBNH’s single-largest stake
FBN Holdings Plc has finally put paid to the controversy that emerged over the ownership of the largest equity stake in the company after the announcement of the acquisition of a substantial shareholding by Mr Femi Otedola, a billionaire businessman.
The holding company of First Bank of Nigeria Limited informed the Nigerian Exchange Limited on Wednesday that the Chairman of First Bank, Mr Tunde Hassan-Odukale, has the largest shareholding in the company.
FBNH, in a letter sent to the NGX on Tuesday in response to the demand made by the bourse in writing on the same day, confirmed Hassan-Odukale and Otedola as the only shareholders with more than five per cent shareholding in the company.
According to a statement, signed by the company secretary, Seye Kosoko, Hassan-Odukale has a controlling share in the company with a 5.36 per cent shareholding while Otedola owns 5.07 per cent.
The NGX had requested the company to issue an announcement on why it classified the indirect shareholdings of Hassan-Odukale into two parts of 4.16 per cent and 1.2 per cent.
The exchange also demanded that FBNH clarify its reasons for including 1.05 per cent of Leadway Pensure PFA’s holdings as part of Hassan-Odukale’s 1.2 per cent indirect shareholdings in the company.
The company said, “The first 4.216 per cent are shares held directly and indirectly by Mr Tunde Hassan-Odukale. The second 1.2 per cent are shares ascribed to Mr Tunde Hassan-Odukale due to his influence and having significant control.
“Mr Tunde Hassan-Odukale has an indirect interest in Leadway Holdings Limited that holds 69 per cent equity in Leadway Pensure PFA and as such exerts significant influence and control over Leadway Pensure. Consequently, the company ascribed these shareholdings to him.”
FBNH listed provisions in the Companies and Allied Matters Act and the Investment and Securities Act to justify its actions.
The share price of the company fell by 6.05 per cent to N11.65 on Wednesday from N12.4 on Tuesday, wiping off N26.92bn from its market capitalisation.
The equities market of the NGX recorded a N12.88bn loss in market capitalisation at the end of trading on Wednesday as investors sold off shares of FBNH and Nestle Nigeria Plc, among others.
The NGX All-Share Index declined by 0.06 per cent to close at 41,789.59 basis points from 41,819.94bps on Tuesday while the market cap fell to N21.81tn from N21.82tn.
Market activities were bearish as the total volume of shares exchanged on the floor of the NGX declined by 19.43 per cent to 284.60 million units valued at N3.2bn in 5,036 deals from 353.23 million shares valued at N5.57bn traded in 5,322 deals the previous day.
Market sentiment, as measured by market breadth, closed positive as 23 firms gained as against 15 losers.
LivingTrust Mortgage Bank Plc led the gainers’ chart with a 9.59 per cent rise to N0.8 per share amid its proposed rights issue of five billion ordinary shares of 50 kobo each at N0.55 per share.
Glaxo Smithkline Consumer Nigeria Plc was top of the losers’ chart as its share price slumped by 10 per cent.