Hassan-Odukale built First Bank majority stake in less than a year

Tunde Hassan-Odukale, through direct and indirect shares, built a majority shareholding in FBN Holdings plc (FBNH), to gain controlling stake in the financial holding company this year, according to data analysed by BusinessDay.

The indirect shares in FBNH are owned through entities like Leadway Assurance and its related companies. Leadway Assurance the privately-held and largest insurance company in Nigeria is owned and run by Tunde Hassan-Odukale.

BusinessDay discovered that Hassan-Odukale acquired the bulk of his shareholding in the bank this year.

The Hassan-Odukale family have held shares in Nigeria’s oldest bank for over 20 years said a person familiar with the family business.

Hassan-Odukale’s recent direct and indirect stake in FBN Holdings Plc shows he has been buying the shares of the financial holding company aggressively this year.

An analysis of First Bank’s annual report shows that Hassan-Odukale’s direct stake in FBN Holdings was 8,854,003 units while his indirect stake was 360,961,091 units as at the end of 2020.

As at October 26, Hassan-Odukale’s direct interest in the bank is 26,231,887 units while entities he controls indirectly own 1,897,280,212 units in the financial holding company.

A letter from First Bank to the Nigerian Exchange Group on Tuesday, showed that Hassan-Odukale and entities he controls are the largest shareholder in the bank, when combined. Hassan-Odukale and his related parties own 4.16 percent and 1.20 percent of FBNH, respectively, according to the letter.

Data gleaned from the letter show that the direct and indirect shares of Hassan-Odukale in the bank now total 1.9 billion units. This a significant jump from the 369.8 million shares held at the end of 2020, according to data from the 2020 annual report of First Bank.

Read Also: Femi Otedola buys 5.07% stake in FBN Holdings

In other words Hassan-Odukale, directly or indirectly, acquired 1.5 billion First Bank shares in 2021 alone, 78 percent of the stake related to him.

Put together, all the shares linked to Hassan-Odukale bring his stake equivalent to 5.36 percent of First Bank’s total outstanding shares and makes him the single largest shareholder. Ahead of billionaire investor, Femi Otedola who owns about 1.8 billion shares or 5.07 percent. This contradicts earlier reports that Otedola is the largest shareholder.

Section 120 of Companies and Allied Matters (CAMA) “provides that a person is a substantial shareholder in a public company if he holds himself or by his nominee, shares in the company which entitle him to exercise at least 5 percent of the unrestricted voting rights at any general meeting of the company.”

Since insurance companies are in the business asset liability management whereby they look for liquid assets to match the risks they insure, it’s no surprise the Hassan-Odukale’s built up their stakes in FBN Holdings said a person familiar with the matter.

Through Leadway Assurance Company Limited, Hassan-Odukale indirectly holds 755,959,459units or 2.11percent. Also, through ZPC/Leadway Assurance Prem & Invent Coll Account he owns 486,605,478 shares of FBN Holding or 1.36 percent.

His indirect holding through Haskal Holdings Limited is 13,229,148 units or 0.04percent; while his indirect holding through Leadway Capital &Trust Limited is 1,004,528 units.

Also, indirectly through LAC Investments Limited, Hassan-Odukale holds 112,552 units of FBN Holdings; through Leadway Properties & Investment Limited (112,237 units); indirectly through Leadway Holdings (Holdco), Hassan-Odukale holds 211,290,798 units of FBN Holdings shares or 0.59percent; through OHO Investment (53,771,413 units or 0.15percent); and through Leadway Pensure PFA, Hassan-Odukale owns 375,194,599 or 1.05percent in FBN Holdings.

FBN Holdings Plc recently received notification from APT Securities and Funds Limited that their Client, Otedola 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.

Otedola’s direct holding is 10 million units while indirect holding through Calvados Global Services Limited is 1.808billionunits. Based on the foregoing, the equity stake of Otedola Olufemi Peter and his nominee in the Company is now 5.07percent.

Calvados Global Services Limited was registered on March 7, 2017 as a private company limited by shares with Business address: 13, Walter Carrinton Crescent, Victoria Island. A check at the Corporate Affair Commission (CAC) shows those behind Calvados Global Services Limited –namely Ola Otedola, Femi Otedola, Temi Otedola, and Ife Otedola.

The shares of FBN Holdings have seen a remarkable rally lately, making it the best performing banking stock.

Increased buy-side activities in the stock have continued to increase, pushing the Holdco’s stock price up by over 70 percent this year. Despite a recent dip to N11.65 per share on Wednesday October 27, the stock price still nears its record 52-week high of N12.9 as many investors position in line with some analysts’ recommendations.

For instance, GTI Research analysts in this week’s recommendation asked investors to “BUY” FBH Holdings shares, saying that the upside potential of the stock over the next 12-months is significantly high when the current price is compared to the analyst’s fair value. GTI has set a target price (TP) of N15.20 for FBN Holdings, which represents an upside potential of 24.08percent.

FBN Holdings has outstanding shares of 35,895,292,792 units valued at N418.180 billion as at Wednesday October 27.


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