The race for strategic control of First HoldCo Plc has entered a new phase after Chairman. Femi Otedola, invested another N222.20 billion to increase his ownership in the financial services group, bringing him within striking distance of Nigeria’s mandatory takeover threshold.
The latest acquisition of 1.77 billion ordinary shares, executed through his investment vehicle, Calvados Global Services Limited, raises Otedola’s total holding from 9.99 billion shares to 11.77 billion shares, equivalent to 25.87 per cent of the company’s issued share capital, according to a regulatory filing submitted to the Nigerian Exchange (NGX).
The purchase comes barely days after the billionaire businessman acquired 706.13 million shares worth N77.58 billion on July 22, underscoring an aggressive accumulation strategy that has now made him the company’s dominant shareholder with investments estimated at about N1.47 trillion.
More significantly for the market, the latest transaction leaves Otedola only 4.13 percentage points below the 30 per cent ownership threshold prescribed under Nigeria’s Investments and Securities Act (ISA) and the Securities and Exchange Commission’s Rules on Mergers, Acquisitions and Takeovers.
Crossing that threshold would trigger a mandatory takeover offer, requiring any shareholder with 30 per cent or more of the voting shares of a listed company to make an offer to purchase the remaining shares from other shareholders.
That regulatory milestone is now expected to become one of the most closely watched issues in Nigeria’s capital market, with investors and analysts monitoring whether Otedola will continue increasing his position or consolidate at current levels.
The sustained acquisitions reinforce his long-term commitment to First HoldCo, where he has steadily expanded his ownership through a series of market purchases over the past year.
In May 2026, he acquired additional shares valued at about N43 billion, following an earlier purchase worth approximately N2.01 billion in September 2025, gradually building what has become the largest individual shareholding in the financial institution.
His aggressive accumulation has coincided with a dramatic re-rating of First HoldCo’s valuation on the Nigerian Exchange.
Only weeks ago, the company overtook Zenith Bank Plc as Nigeria’s most valuable banking stock by market capitalisation after an exceptional rally in its share price.
The stock has appreciated by more than 120 per cent over the past month, making it one of the exchange’s strongest-performing large-cap equities and significantly increasing the market value of Otedola’s investment.
Beyond the ownership dynamics, market participants say the investment sends another strong signal of confidence in the transformation strategy being implemented across the First HoldCo group and its flagship subsidiary, FirstBank.
Attention is also shifting to shareholder returns following indications that the board has adopted a policy of distributing at least 60 per cent of the group’s profit after tax as annual dividends, subject to regulatory approvals.
The proposed dividend framework is expected to strengthen the company’s investment appeal, particularly among long-term institutional and retail investors seeking both capital appreciation and recurring income.
Boniface Okezie, a shareholder activist and leader of a shareholders’ association, said Otedola’s increasing ownership would ultimately benefit all investors if the group’s earnings continue to improve.
According to him, the value of acquiring a larger stake extends beyond capital gains to the ability of the company to generate sustainable profits capable of supporting stronger dividend distributions.
“Buying more shares is not just about benefiting from the rising share price. The real objective is profitability that will translate into sustainable dividends for shareholders. Minority investors also expect better returns, and I believe that is part of the long-term strategy,” Okezie said.
He noted that because First HoldCo derives substantial value from FirstBank’s earnings, stronger profitability at the banking subsidiary would directly enhance returns available for distribution to shareholders.
He added that Otedola’s continued accumulation of shares has also strengthened market confidence by improving liquidity and reinforcing investor optimism about the group’s long-term prospects.
