FirstHoldCo N323bn block deal sparks denials from FG, Otedola
BY TEMITOPE ADEBAYO
The Federal Government and billionaire investor Mr Femi Otedola have firmly denied any role in the recent acquisition of a 25 per cent stake in FirstHoldCo Plc, a transaction valued at N323.4 billion.
Their responses follow widespread speculation that the deal was facilitated through a government-backed Special Purpose Vehicle (SPV), a claim both parties insist is false.
Reports circulating online alleged that a trustee acting on behalf of the federal government, under the oversight of the Attorney General’s office and the Central Bank of Nigeria (CBN), acquired the shares pending decisions tied to FirstBank’s recapitalisation plans. However, the government has swiftly discredited the claims.
In a statement by the spokesperson for the Attorney General of the Federation and Minister of Justice, Mr Kamarudeen Ogundele, described the reports as “false, misleading, resentful and potentially harmful.”
He said neither the Attorney General, Mr Lateef Fagbemi, nor any federal institution participated in, or had knowledge of, the transaction.
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While confirming the existence of a trustee structure approved by the CBN, Ogundele explained that the government was not involved, noting instead that Renaissance Capital (RENCAP) was appointed by the apex bank as an independent third-party supervisor.
FirstHoldCo Plc has also clarified the deal’s structure, distancing its Chairman, Mr Otedola, and the federal government from the purchase.
In a statement signed by the Company Secretary, Mr Adewale Arogundade, the firm said Mr Otedola had no involvement in the transaction, nor did any government agency acquire the shares.
Indications are rife that RC Investments Ltd, a vehicle linked to Renaissance Capital, was behind the acquisition.
It is, however, worth noting that the shares were sold by Barbican Capital Limited and affiliates connected to former major shareholder Oba Otudeko, as well as Leadway Group. RC Investment Management Ltd was confirmed as the acquirer, acting through an SPV in a transaction executed off-market on the Nigerian Exchange (NGX) on July 16, 2025.
The block deal involved 10.43 billion shares priced at N31 each across 17 negotiated trades, amounting to approximately 25 per cent of FirstHoldCo’s total outstanding shares. Following the announcement, the firm’s share price rose to N32.20, a gain of over 20 per cent within the week, signalling investor enthusiasm over the scale and implications of the transaction.
The move also marks the formal exit of Oba Otudeko, a long-standing figure in the company’s history.
Market analysts, therefore, view the deal as one of the largest off-market trades in NGX history, potentially setting the stage for significant governance shifts or recapitalisation efforts aligned with the CBN’s updated capital adequacy framework.
While speculation persists over the buyer’s long-term intentions, both FirstHoldCo and federal authorities have reiterated the importance of transparency, warning against the spread of misinformation that could undermine investor confidence and market stability.
