July 08, (THEWILL) – Oba Otudeko’s Honeywell Group last Thursday bought 4,770,269,843 shares of First Bank of Nigeria Holdings (FBNH) Plc in a cross deal worth N87.8 billion, thus making the multibillionaire businessman the largest shareholder of Nigeria’s oldest fincincial services institution.
Reports to the regulatory authorities reveal that the shares which Otudeko bought at N19 per unit are the largest volume of First Bank shares traded in a single day since 2012, when the stock exchange started publishing data. The acquisitions take his shareholding to 14 percent of the bank’s outstanding market value.
A “disclosure of shareholding” sent to the Company Secretary, FBN Holdings Plc and dated July 7, 2023, by Honeywell Group Limited stated: “We write on behalf of Barbican Capital Limited, an affiliate of Honeywell Group Limited and refer to the provisions of Sections 119 and 120 of the Companies and Allied Matters Act 2020 (as amended).
“In addition to the previously disclosed interests by Honeywell Group Limited’s affiliates, kindly take this as notification that, as at 7th July 2023, Barbican Capital Limited has acquired an aggregate of 4,770,269,843 shares in FBN Holdings Plc. Kindly accept the assurances of our highest regards. Yours faithfully, Yewande Giwa Head, Governance & Sustainability.”
Reports confirmed that FBN Holdings Plc acknowledged Honeywell Group Limited’s acquisitions on the same day in a letter signed by Adewale Arogundade, Acting Company Secretary of the group.
“This is to inform the public and our stakeholders that the Company received a notification dated July 7, 2023 from Honeywell Group Limited that its affiliate, Barbican Capital Limited has acquired an aggregate of 4,770,269,843 units of shares from the Company’s issued share capital of 35,895,292,791, as at the above referenced date. Based on the foregoing, the equity stake of Barbican Capital Limited in the Company is 13.3%”, the document stated.
Analysts say Otudeko, who was chairman of First Bank until 2019, is making a swift comeback to become the single largest shareholder of the bank.
It could be recalled that billionaire Femi Otedola became the bank’s single largest shareholder in 2021 after a tussle with Hassan Odukale who was also vying for control of the bank after a leadership gap emerged from Otudeko’s exit
With Otudeko now leading the battle for the control of First Bank of Nigeria Holdings Plc with 14 percent shareholding, Otedola drops to second with nine percent shareholding. Hassan Odukale and Mike Adenuga are joint third, each with seven percent shareholding. Saheed Arisekole is fourth with five percent shareholding.
Oba Otudeko in May 2022 sold Honewell’s shares worth N22bn to Repay Age Long Debt to FBNH
After months of negotiations and proper preparation of documentation, Flour Mills of Nigeria Plc a Nigerian agro-allied group led by Greek investor, John Coumantaros, has announced that it has acquired a 71.69-percent stake in Honeywell Flour Mills, as well as a 5.06-percent stake in the firm for N4.2 ($0.01011) per share.
Following the completion of the transaction, industrialist Obafoluke Otudeko, who is the founder of Honeywell flour mills pocketed a total of N22.24 billion ($53.55 million) from his stake in the deal.
Otudeko owned 66.8 percent of Honeywell Flour Mills, a leading flour and pasta product manufacturer operating under the auspices of Honeywell Group, which has a diverse product portfolio including Honeywell Semolina, Honeywell Noodles and Honeywell Pasta.
Otudeko stated that the acquisition was consistent with the company’s desire to build a business that better serves Nigerian customers.
“As we entrust Flour Mills of Nigeria with building on Honeywell Flour Mills’ strong legacy, we will work closely with them to ensure seamless integration, laying the groundwork for the combined company’s success,” he said.
The acquisition of a majority stake in the Nigerian miller by Flour Mills of Nigeria represents Otudeko’s final attempt to unlock value from his stake, following a slew of dividend payments and remuneration from his business since its inception nearly four decades ago.
The journey to the sale and purchase of Honeywell Flour Mills began in 2021 when Otudeko began battling with a myriad of troubles stemming from his alleged underhand deals as Chairman board of directors, First Bank of Nigeria Holdings.
Following his sack alongside others from the board of FBNH by the Central Bank of Nigeria, the CBN ordered his Honeywell Flour Mills to repay a loan it took from First Bank within 48 hours.
According to the letter by the apex bank to the company (Honeywell Flour Mill), it was required to fully repay its obligations to the bank within 48 hours, failing which the CBN will take appropriate regulatory measures against the insider borrower and the bank.
The apex bank was upset with First Bank for non-compliance with regulatory directives to divest its interest in Honeywell Flour Mills, despite several reminders.
But Otudeko countered CBN insisting that Honeywell always serviced its loan accordingly.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
