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OTEDOLA TAKES OVER 40 PERCENT OF FIRST HOLDCO IN FORCED EXIT OF OTUDECO
A total of N324.47 billion value for 10.47 billion units of shares in off-market block trading on First Holdco Plc shares, took place on the floor of the Nigerian Exchange Limited (NGX) yesterday in a mega deal linked to Mr Femi Otedola, who increased his current 15 percent holdings to about 40 percent, giving him total control of Nigeria’s oldest bank which has so far punched below its potential.
Oba Otudeko, the erstwhile Chairman of FirstHoldco, was forced to sell off over 20 percent of shares linked to him as the bank’s management, controlled by Otedola, moved to criminalise and prosecute Otudeko’s past misdeeds in the Federal High, Lagos, even when the issues had been settled commercially with regulatory action. With these share transactions, First Bank is expected to withdraw its criminal complaint against Otudeko who at 82 can retire gracefully with over N300 billion in cash.
Another long term shareholder; The Hassan-Odukales voluntarily exited the bank and sold 5 percent of their holdings in a mega transaction as they seek better shareholder value elsewhere.
These acquisitions by Otedola, markets believe, is the first step to bringing stability to the troubled bank after years of shareholder in fighting.
But the challenge ahead is raising the N500 billion new share capital before CBN deadline less than a year away. They will need to raise another N154 billion and contend with none performing loans of up to a trillion naira and CBN directives to end forbearance.
It was gathered that the off-market deal was executed at a fixed price of N31.00 per share on NGX as the lender’s stock price yesterday gained 9.9 per cent to close at N32.2 per share.
A source disclosed that the transactions were negotiated deals, which meant the trades were arranged privately between parties and then reported to the Exchange—not through the regular buy/sell orders seen during daily trading sessions.
Findings showed that 17 separate deals took place involving First Securities Ltd as the buyer with CardinalStone Securities Ltd, Meristem Stockbrokers Ltd, Renaissance Capital (Rencap) Securities Ltd, Regency Asset Management Ltd, United Capital Securities Ltd, Stanbic IBTC Stockbrokers Ltd as the seller of First Holdco’s stock.
It was learnt that First Securities Ltd also acted as seller in some deals, indicating a portfolio reshuffling or inter-account transfer.
A significant negotiated off-market trade rippled through the NGX, pushing the market value past N1.44 trillion.
GTCO Emerges as First Listed Financial Institution on NGX to Cross N100 Per Share
Meanwhile, Guaranty Trust Holding Company (GTCO), yesterday emerged as the first listed financial institution in Nigeria to cross the N100 per share mark on the Nigerian Exchange Limited (NGX).
As markets continue to bet on GTB as the most profitable bank in Nigeria.
The stock price closed for trading on the NGX at N101.00 per share, about 7.62 per cent or N7.15 per share increase from the N93.85 per share it opened for trading.
Check showed that GTCO’s stock price this week alone has appreciated by 7.3per cent from N94.10 per share the stock closed for trading last week amid its dual listing of 2,288,250,000 ordinary shares on NGX and on the London Stock Exchange (LSE).
So far in 2025, investors that invested in GTCO have reap a 57per cent or N44.00 per share stock yield, considering the N57 per share price the stock closed for trading in 2024.
GTCO’s rally was likely fuelled by positive market reaction around its cross-border listing and strong first quarter (Q1) ended March 2025 earnings.
The stock has gained over 27per cent month-to-date (MtD) from N81.25 per share it opened for trading.
GTCO began trading on the Exchange in 2025, opening in January at N57.00 per share and trading a total of 393 million shares that month, closing at N61.05 per share.
Although February 2025 started on a bullish note, price action soon lost steam, and the stock closed the month with a muted gain of just 0.25 per cent.
Momentum returned in March with a sharp 12.4per cent rise, lifting first-quarter performance to a solid 20.7per cent.
The second quarter opened on a bearish note, as the stock shed 4.9per cent in April, its only red month so far.
GTCO’s additional 2.29 billion ordinary shares of 50 kobo each listing on NGX has positively impacted on the lender’s outstanding shares.
GTCO trading above N100 per share is driven by a wave of positive developments, part of which includes Q1 2025 earnings, possible interim dividend payout in the half year (H1) ended June 2025, listing on the LSE, and meeting Central Bank of Nigeria (CBN) regulation on forbearance.
The lender posted profit before tax of N300.4 billion in Q1 2025, supported by strong growth in core earnings.
In mid-June 2025, the CBN directed all banks under regulatory forbearance—due to credit exposure or breaches of single obligor limits—to suspend dividend payments, defer executive bonuses, and halt new investments in FX subsidiaries.
In addition, GTCO’s recent move to seek global capital likely lifted investor interest.
On July 9, 2025, it listed 2.29 billion ordinary shares on the London Stock Exchange’s Main Market, followed by an additional 2.28 billion shares on the Nigerian Exchange the next day.
Commenting on the dual listing recently, Group CEO, Mr. Segun Agbaje said GTCO was targeting a minimum dividend yield of 15 and return on equity (ROE) of at least 25per cent — reflecting confidence in the group’s growth outlook.
In his words, he said, “A lot of our Nigerian retail shareholders judge us more on dividends. So, we’re now going to work on two parameters.
“I think that every Nigerian company should try and pay at least 15per cent dividend yield when you look at the rate of inflation.
“So we’re going to keep that as a parameter. I think when you look at some of the volatility in the macros, you’ve got to do at least a 25per cent ROE at the minimum.
“So it means, by doing this deal now, we’re going to be managing, hopefully, a dividend yield about 15per cent ROE expectations for retail Nigerians and a 25per cent minimum for foreign institutions.”
