ON Wednesday, billlionaire Femi Otedola secured a humongous off-market transaction of 10.43 billion units of the First Bank or FirstHoldco’s shares estimated at N323.4 billion. This was the highest off-market transaction in the history of the Nigerian stock market.

The transaction raised Mr Otedola’s stake in First Bank or First Holdco to 36.7 percent, having acquired the shares of his major competitors and two other majority shareholders, Mr Oba Otudeko and Mr Tunde Hassan-Odukale.

Mr Hassan-Odukale is a former chairman of First Bank of Nigeria. Mr Otudeko, who was First Bank’s chairman for 24 years before his removal by the CBN in 2021, owned 8.65 percent stake, excluding the 7.4 percent and 4.7 percent shareholding under litigation.

READ ALSO: First Bank: How Otedola bought Otudeko, Hassan-Odukale’s 10.43bn shares, raised stake to 37%

Mr Otedola’s shares were acquired at N31 per share in 17 deals on Wednesday, reliable market sources told Economy Post. They were sold to a company known as RC Investment Management Limited linked to Mr Babatunde Samuel Sule.

With Mr Otedola in firm control of First Bank, here are four things to expect at the bank.

Capital raising

Market watchers say the bank is now positioned to raise more capital to meet the Central Bank of Nigeria (CBN) bank recapitalisation deadline next year. The bank’s N150 billion rights issue earlier in 2025 were 25 percent oversubscribed, but the bank plans a private placement of N350 billion.

The CBN gave banks deadlines to recapitalise by March 31, 2026 to strengthen their operations. Under the arrangement, banks with international licences like First Bank will raise their capital base to a minimum of N500 billion, from N50 billion before the exercise. National banks are to raise their minimum capital to N200 billion, from the N25 billion prior to recapitalisation, while regional banks will maintain a minimum capital base of N50 billion, from N10 billion previously.

As of the first half (H1) of 2025, Access Bank, Zenith Bank, Ecobank Nigeria, Lotus Bank, and Jaiz Bank had met their capital requirements. First Bank has been hard hit by boardroom tussles between Mr Otedola and Mr Otudeko, which has led to court injunctions stopping scheduled board meetings meant to discuss capital raising.

READ ALSO: 10 things to know about First Bank ownership tussle

However, with the resolution of the conflict between the billionaires, market watchers expect to see acelerated capital raising measures in race to meet the apex bank’s deadline just in 8 months.

Share appreciation

The shares of First Bank jumped from N29.30 on Wedbesday to N35.40 on Thursday, representing a 21 percent increase in just 2 days. Analysts say that the resolution of the boardroom tussle in First Bank will likely restore investor confidence in the bank and lead to share appreciation of FirstHoldco.  

FirstHoldco is generally seen as an undervalued stock, with a low price-to-earnings (PE) and price-to-book (PB) ratio. Simply Wall Street analysts estimate First Holdco’s intrisic valuation at N70.55. This means the perceived or calculated value of FirstHoldco asset is put at N70.55 as against the current rate. Hence, it means the stock has the capacity to double over time. FirstHoldco is the parent company of First Bank.

One analyst, Mr Chike Okoye, predicts that “more investors will likely look at FirstHoldco, which is a strong buy, after the resolution of Otedola and Otudeko’s conflict.”

Structural changes

Analysts say there may be changes in the bank, with individuals seen to be loyal to Mr Otudeko likely to be shown the exit door. Though the process started some time ago, market watchers predict that Mr Otedola will seek to consolidate his office by placing people loyal to him at critical positions of power.

Higher returns to shareholders

With stabiliy returning to the bank, analysts see it translating into better returns to shareholders. One analyst said the stability could lead to bigger revenue and profits, resulting in higher dividends for shareholders of Nigeria’s oldest bank. FirstHoldco shareholders voted in favour of 60 kobo per 50 kobo ordinary share at the company’s 13th Annual General Meeting held on the May 25, 2025.