Femi Otedola, a billionaire businessman, has been named by FBN Holdings to take Ahmad Abdullahi’s place as the new chairman of the board of directors.
Otedola was appointed during the board meeting, according to a corporate notice the financial institution filed with the Nigerian Exchange Limited on Wednesday.
On August 15, 2023, Otedola was appointed as a Non-Executive Director. At the company’s most recent annual general meeting, the shareholders approved his appointment.
Despite the former group chairman, Oba Otudeko, acquiring 4.7 billion units of FBNH shares in July, Otedola was listed as the largest shareholder of First Bank of Nigeria Holdings Plc in its unaudited consolidated financial statements for the period ended September 30, 2023.
Otedola indirectly owned 1,989,342,376 units, or 5.54 percent of the bank’s total share capital. Otedola directly owned 40,033,982 shares of FBN Holdings, or 0.11 percent of the total.
Otedola own 2,029,376,358 units total in FBN Holdings, or roughly 5.65% of the company.
“I’m happy about his appointment,” stated Bisi Bakare, President of the Pragmatic Shareholders Association, in reference to the development. He has proven himself. He currently serves as the chairman of Geregu Power and has chaired numerous other businesses. Otedola is someone we think can perform.
“Any company where Otedola served as chairman was always the first to submit its annual report, if you look at those companies. I think he will present the same idea to FBN Holdings. Femi Otedola always makes sure to give minority shareholders a healthy dividend, no matter where he is. We anticipate that Otedola will treat its shareholders well this time around, particularly the minority shareholders.
She went on to say that the minority shareholder community had discussed Otedola’s appointment as chairman of FBN Holdings in great detail and had even held a poll on their WhatsApp group, in which nearly half of the participants supported the billionaire businessman’s rise to the position, over 20% opposed it, and less than 20% chose not to participate.
The Progressive Shareholders Association’s National Coordinator, Boniface Okezie stated, “This is a cheering news.” As a board member, the board decided in today’s lengthy meeting that, given the current status of the country’s economy, he should be appointed to head the bank.
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“Femi has been tried and true. He has the ability to take the financial institution to new heights. He has a lot expected of him. Without a doubt, he will lead the group effectively and perform well. He is not an outsider; he is an investor. His eyes will be there to safeguard his investment because his money is there.
According to Okezie, minority investors prioritize dividends when it comes to their agenda.
“He needs to ensure that the holdco increases capital appreciation and pays out larger dividends to investors.”
Otedola’s most recent appointment has made him the chair of two listed companies, one of which is the power generation company Geregu Power Plc, whose revenue at the end of 2022 increased by 74.11% to N82.91 billion from N47.62 billion.
In the previous five years, this was the most money it had made.
After taxes, its profit was N16.05 billion, up from N10.17 billion the year before.
Through Amperion Power Distribution Limited, Otedola indirectly owns 1,965.979,283 Geregu Power shares in addition to 1,245 directly held by the company.
Declaring that the “strategic investment underscores his confidence in Dangote Cement’s potential to generate foreign exchange for the country and his dedication to supporting businesses that contribute to Nigeria’s economic resilience,” Otedola confirmed his “significant acquisition of shares in Dangote Cement” in January.
Otedola played a significant role in shaping the capital market in 2023, particularly after he acquired a 5.52% share in Transcorp Plc, making him the company’s second-largest shareholder. As of December 2022, United Bank for Africa nominees held approximately 9.25% of the company, placing him in second place.
Since the owners of the company rejected his attempt at a corporate takeover, he has separated from the native conglomerate.
