Bank directors buy N39bn shares amid sector recapitalisation

Onwubuke Melvin
Onwubuke Melvin

As the banking sector’s recapitalisation accelerates, some bank executives are beginning to bet on their companies by raising their stakes, according to The PUNCH.

The analysis of the directors’ transactions with the Nigerian Exchange Limited from the end of May to June, shows bank directors purchased around 1.86 billion shares worth approximately N39.32 billion.

The Chairman of FBN Holdings, Femi Otedola led the pack in the market, acquiring around N36.35 billion in shares in several deals to become the banking group’s majority shareholder.

According to the bank’s recently released audited results, Otedola held 40,033,982 (0.11 percent) directly and 1,989,342,376 units (5.54 percent) as of December 2023, which was less than the 3,110,400,619 units (8.67 percent) directly held by Barbican Capital Limited, a company related to businessman and former bank Chairman Oba Otudeko.

With his most recent acquisition, he has become the largest stakeholder in the banking group and a strategically vital bank.

The Zenith Staff Provident Fund resumed its share-acquisition frenzy this year, purchasing around 45,323,696 Zenith Bank shares worth approximately N1.58 billion in June at values ranging from N35.75 to N32.87 per unit.

Also in June, Sterling Financial Holding Company’s board and management asserted claims in the company’s shares for N327.79 million.

The Executive Director of Sterling Bank Ltd (a subsidiary of Sterling Financial Holdings Company Plc), Tunde Adeola, purchased about 35,041,551 units of shares valued at N148.82m in four days in June.

June 20, the Divisional Head of Business Growth and Transactional Banking, Sterling Bank Ltd, Ukachukwu Obinna, also purchased five million shares at N4.41 each.

An Executive Director of Sterling Financial Holdings Company Plc, Olayinka Oni; its Group Company Secretary, Temitayo Adegoke; its GMD/CEO, Adeyemi Odubiyi and Non-Executive Director, Suleiman Abubakar, acquired about 37,811,501 units of the group’s shares valued at N156.92m on June 14.

For Access Holdings, the Managing Director of the Tengen Family Office, Chizoba Ufoeze, acquired 1.5 million units of the banking group’s shares at N19.25 per unit.

Tengen Family Office is a corporation associated to the HoldCo’s chairman of the board, Aigboje Aig-Imoukhuede.

Tengen Holdings (Mauritius) Limited, which is tied to Aig Imoukhuede, purchased N1.01 billion in business shares in May.

In early June, the Central Bank of Nigeria announced that banks had begun to submit recapitalisation plans.

“Our banks have begun submitting implementation plans for the banking sector recapitalisation programme in compliance with the CBN Circular reviewing the minimum capital requirements for commercial, merchant, and non-interest banks,” central bank spokesperson Hakama Sidi Ali said in a statement.

Fidelity Bank was first to launch its N127 billion rights issuance and public sale on the NGX.

The Executive Commissioner (Operations) of the Securities and Exchange Commission, Bola Ajomale, at a webinar over the weekend themed ‘Trading Rights: What Every Investor Needs to Know’ organised by the NGX, said rights issues could account for a greater part of the planned capital injection in the new banking recapitalisation process.

Ajomale stated, “The capital raising may occur through the rights issue method. Four of the six money raised in the market this year are for the right offerings.”


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