JUST-IN: First Bank Shareholders Suffer N80.76bn Loss After Electing Otedola As Director

First Bank of Nigeria Holdings Plc (FBNH) shareholders have lost at least N80.76bn in the past week as negative market sentiments hit the company since its last Annual General Meeting (AGM).

Shares of First Bank dropped from N18.80 on August 18 to N16.55 on August 25, causing shareholders to lose N2.25 for every single share held, data analysed by THE WHISTLER reveals.

On Monday, August 21, FBNH shares began trading at N18.80 with a market capitalisation of N674.83bn but it plunged to N16.55 per share, triggering a fall in market capitalisation to N594.1bn.

The drop led to a loss of N80.76bn, making FBNH shareholders the 6th biggest losers in the reviewed period based on a percentage drop in share prices.

According to our reporter that billionaire businessman, Femi Otedola, who has the second largest individual shares in FBNH was elected as a non-executive director of FBNH under controversial circumstances.

Otedola was elected on August 15 at the company’s AGM despite an interim injunction blocking the FBNH from holding its AGM.

The ex parte order of interim injunction with Suit No. FHC/L/CS/1575/23 – In the Matter of Olojede Adewole Solomon, Adebayo Oluwafemi Abayomi and Ogundiran Emmanuel Adejare vs. FBN Holdings Plc was served on Friday, August 11, 2023.

The AGM was scheduled for August 15, 2023.

First Bank said it’s lawyers filed and served the petitioners with a notice of appeal challenging the suit.

At the AGM, shareholders approved an additional N150bn capital raise through rights issue and an increase in its Issued Share Capital.

They also elected Oyewale Samson Ariyibi as Executive Director of FBNH.

Oba Otudeko has the largest majority shares held by an individual in FBNH with 13.3 per cent of the company’s issued share capital of 35,895,292,791.

Otedola occupies the second place with 7.57 per cent of the company’s issued share capital.

In the first half of 2023, FBNH declared N 187.2bn profit after tax and N383.28bn interest income.