Otudeko’s Honeywell buys N91 billion shares to become First Bank’s top owner

Honeywell Group, owned by Oba Otudeko, has stepped up its stake in FBHoldings Plc, the owner of First Bank, by acquiring nearly five billion of shares in the financial services group.

– Key details of the transaction

The acquisition on Thursday was done through Barbican Capital Limited, an affiliate of the Honeywell Group.

“Honeywell Group Limited (HGL) has notified FBN Holdings Plc (FBN) and regulatory authorities of the acquisition of 4,770,269,843 shares of FBN by its affiliate company, Barbican Capital Limited. This purchase is in addition to previously disclosed interests by HGL’s affiliates,” the company said in a statement.

The deal raises Honeywell’s stake in the financial institution to 13.07%, making Mr Otudeko the single largest shareholder of the bank.

The transaction at N19 a share totalled N90.6 billion. It is the largest volume of First Bank shares traded in a single day since 2012, when the stock exchange started publishing data, according to BusinessDay.

“HGL holds its investments for the long term, working closely with all stakeholders to foster the creation of enhanced value for all,” Honeywell said. “The investment is consistent with HGL’s mission to create, build and invest in great businesses that deliver enduring value and improve lives.”

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Mr Otudeko, a former chairman of FBN Holdings board, was removed in 2021 by the Central Bank of Nigerian as the country’s oldest lender faced an internal crisis over the appointment of the bank’s chief executive and a deal that raised conflict of interest concerns.

Months later, billionaire Femi Otedola became the single biggest shareholder in FBN Holdings after raising his stake to 7.57%, beating Mr Otudeko and Oye Hassan Odukale, two of the firm’s biggest owners with 1.5% and 1.03% respectively at the time.

Shares in FBN Holdings rose from N16.90 on June 26 to N20.30 on July 7, a day after the acquisition.

On Friday, FBHolding was the most traded bank with 131.8 million of its shares bought, followed by Wema Bank which sold 121 million.

UPDATE: The worth of Mr Otudeko’s acquisition was updated from N87.8 billion to N90.6 billion.