First Bank Otedola Takeover: Board, MD Stays For Now- Sources

By Fola James

Femi Otedola will not effect any significant change in First Bank until the end of the year despite being declared as the largest shareholder, the magazine has learnt.

The business mogul will allow the tenure of the current managing director of the bank, Adesola Adeduntan to expire in December before he effects board change in FBNH Plc, the mother company of First bank Nigeria Limited, FBNL. The current board under the chairmanship of Remi Babalola was appointed in April this year by the Central Bank of Nigeria, CBN following the botched removal of Adeduntan as chief executive.

The magazine had reported that Otedola was making a move to take over the bank, after he successfully purchased more 1,818,551,625 shares from the company’s issued share capital of 35,895,292,791, which represents more than five percent of total equity, and according to CBN’s guidelines gives him the power to do so. His shares in the bank are said to be worth over N30 billion.

The management of the bank initially denied such moves, but has now owned up that such move indeed exists, after it admitted that Calvados Global Services Ltd, CGSL, Otedola’s company is now the largest equity holder.

A statement, signed by the company secretary, Seyi Kosoko said, “We refer to our communication to the market dated, October 22, 2021 on the above subject wherein we stated that we would inform the public of any substantial acquisition, upon receipt of notification from the shareholder.

“This morning, October 23, 2021, FBN Holdings Plc received a notification from APT Securities and Funds Limited, that their client, Mr Otedola Olufemi Peter, and his nominee, Calvados Global Services Limited have acquired a total of 1,818,551,625 units of shares from the company’s issued share capital of 35,895,292,791.

“Based on the foregoing, the equity stake of Mr Otedola Olufemi Peter and his nominee in the company is now 5.07 per cent,” the statement said.

According to the bank’s 2021 Half year report submitted to the Nigerian Exchange, NGX other big equity holders including Globalcom owner, Mike Adenuga and Otudeko have less than five per cent equity in the commercial bank.

The Source magazine learnt that the initial rebuff from the bank was prompted by some members of the board who felt that Otedola, one of the promoters of the $100 million Geregu Power Plant should not be allowed to take over the bank.

“Their objection is based on the fact that the new board had barely settled down in office after they were appointed seven months ago by the CBN. Therefore, allowing new people to take over now will present the bank to the public as unstable, and that’s not good for the image of any financial institution,” a reliable source in the bank said.

The source, however, said public institutions are not run based on sentiment but based on rules set by the regulator “which stipulates that the largest equity holder of any public quoted company can declare ownership”.

Another source told the magazine that “This group of people were the ones that engineered the statement where the bank said Otedola’s company did not have majority shares. They forgot that FBN is a public quoted company whose information is in public domain.

“What they simply want is to buy more time before Otedola finally takes over. But the way things are going the current Board will soon give way to the control of Otedola’s people, who will anytime from now declare ownership,” another source said.

 Multiple sources, however, informed the magazine that the business man will not want to immediately take over the bank, but wait for the tenure of the current chief executive and managing director to expire, so as not to set off another crisis in the bank following the one that occurred early in the year, when the former board unsuccessfully sacked Adeduntan.

“The bank already has enough crisis on its plate, therefore, adding another one to it will not improve its image. A wise business man like Otedola understands the game, rather than upsetting the apple’s cart, it will be wise to let the tenure of the current managing director, which comes to end in December, expires before doing anything.

“What Otedola’s group thinks is that any management change at this moment will unsettle the bank. They are prepared to wait till the end of the year to take full control. But, definitely, the current board will go because he that pays the piper dictates the tune ’ one source close to the businessman said.