The tussle for power on the NGX is fascinating as it spotlights wealth-creating opportunities in companies that the public has long ignored. We saw this in April when Nigerian businessman and billionaire Femi Otedola (F.Ote$) sought to buy up controlling shares in Transcorp Plc, owned by fellow businessman and billionaire Tony Elumelu.
The result was an over 1x rise in Transcorp’s shares from ₦1.40 to ₦3.1 in under two weeks, as Otedola’s interest in the dormant conglomerate sparked buying interests in the public. However, as business concluded between the two moguls, Transcorp’s share price fell back to ₦1.8 within another two weeks, leaving retail investors licking their wounds (although temporarily).
Recently, F.Ote$ has been in the news again for the battle of Nigeria’s oldest bank–First Bank of Nigeria Holdings (FBNH), with Oba Otudeko (the bank’s former and longest-serving Chairman).
The battle began on Thursday, 6th of July 2023, with Oba Otudeko acquiring over 4.7 billion shares worth ₦87.8 billion via Barbican Capital Limited, an affiliate of the Otudeko-owned Honeywell Group. This move saw him emerge as the single largest shareholder (15% of total shares), overtaking F.Ote$ (with 9%), who has held the title since at least December 2021.
Alongside the positive spillover effects from recent foreign exchange reforms that have sparked renewed interest in banking stocks; this move—the single largest transaction on the NGX in 2023, has also contributed to the 28% rise