First Bank: Oba Otudeko Renews Corporate War With Femi Otedola, Plots Comeback As Board Chairman

Both men have been attempted to outdo the other in the contention for the top ownership of the holding company.

The battle for the soul of First Bank rages on as Oba Otudeko, a former chairman of the directors’ board of FBN Holdings, is seeking to return to the top hierarchy of the lender. Otudeko was ousted in 2022 following a shake-up at the financial institution by the Central Bank of Nigeria that indicted him for breach of corporate governance.

In a letter dated 7 January, Mr Otudeko (representing Barbican Capital Limited) and Saheed Alao (representing Industrial Mercantile and Investment Company Limited) wrote the top-tier lender, demanding removal of Femi Otedola, the chairman of FBN Holdings, and Julius Omodayo Owotuga, a non-executive director of the group, as directors of the holding company.

According to the letter, Industrial Mercantile and Investment Company Limited holds 842.2 million shares in FBN Holdings. they both be appointed as directors of FBN Holdings, subject to the approval of Central Bank of Nigeria, replacing the removed directors.

The ex-FBN Holdings’ chairman (Otudeko) holds an 8.7 per cent stake in the financial services group through Barbican Capital, and is second only to Mr Otedola in the ranking of top owners of the company. Both men have at various times in the past attempted to outdo the other in the contention for the top ownership of the holding company, which is the parent of Nigeria’s oldest lender First Bank.

Otedola currently holds a 13.6 per cent interest, translating into 5.4 billion shares, in the corporation. His latest share acquisition is the 534.1 million units he purchased last September. According to Otudeko’s letter, Industrial Mercantile and Investment Company Limited holds 842.2 million shares in FBN Holdings.

In a separate letter dated 8 January and signed by Oba Otudeko and addressed to FBN Holdings’ company secretary, Barbican Capital raised concerns about the decision of the lender’s directors board to raise additional capital for the company through private placement.

Barbican argued that the board’s decision to explore private placement is rushed considering that the deadline for meeting the new recapitalisation rule is 2026, implying that there is still ample time to raise the capital.

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