The Office of the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, has denied reports suggesting that the Federal Government of Nigeria acquired a 25% stake in First Bank Holdings (First Holdco).
This Day in a report published on Friday titled “25% of First Holdco’s Shares Went to FG’s Trustee, Not Otedola” and aired on Arise TV had claimed that “contrary to its earlier report suggesting that Mr. Femi Otedola, had increased his shares stake in First Holdco Plc to 40 per cent, from his current 15 per cent, emerging details have revealed that the shares were actually acquired by a trustee, a Special Purpose Vehicle (SPV), acting under the aegis of the federal government.”
The paper further claimed that the trustee was set up through the settlement being brokered by the Office of the Attorney General of the Federation, working with the Central Bank of Nigeria, facilitated the acquisition through a custodial arrangement.
The outlet quoted a source familiar with the deliberations to have said: “the shares are now with the trustee for the next two or three weeks when they will decide how to proceed and reach a strategic decision on what to do with the shares and also look at FBN’s plan for capital raise to meet CBN requirement.”
Reacting to the report in a statement the Attorney General denied the report describing it as “inaccurate, misleading, resentful, and malicious.”
In the statemnet signed by Kamarudeen Ogundele, the Special Assistant to the President on Communication and Publicity, office of the AGF, unequivocally stated that neither the Federal Government nor the Attorney General’s office participated in acquiring the shares in question.
“The circumstances surrounding the shareholding structure are distinct from any government involvement,” Ogundele stated.
The AGF’s office explained that a trustee set up by First Holdco, with the Central Bank of Nigeria approving Stanbic IBTC as a third-party overseer, is involved in the shareholding structure.
Ogundele urged the media to exercise restraint, professionalism, and due diligence in their reporting to avoid violating the law.
The denial comes amid scrutiny of First Bank’s operations and governance.
The AGF’s office reassured the public of its commitment to promoting the rule of law, justice, equity, accountability, transparency, and service to the nation under President Bola Ahmed Tinubu’s administration.
Background:
Following shareholders’ infighting, Oba Otudeko was charged to Federal High Court based on a criminal complaint by Otedola-led FBN management – the infighting among shareholders left the CBN concerned that FBN may not meet the new capital requirement if the infighting continues.
The apex bank working with the Attorney General decided to seek a none legal solution to the infighting, resulting in the exit of Oba Otudeko in return for withdrawing the criminal complaint and prosecution by First Bank.
The result is the movement seen in the market on Wednesday when a total of N324.47 billion value for 10.47 billion units of shares in off-market block trading on First Holdco Plc shares, took place on the floor of the Nigerian Exchange Limited (NGX).
Oba Otudeko, the erstwhile Chairman of FirstHoldco, was forced to sell off over 20 percent of shares linked to him.
Also, another long-term shareholder, the Hassan-Odukale family, voluntarily exited the bank and sold five percent of their holdings in a mega transaction as they sought better shareholder value elsewhere.
It was gathered that the off-market deal was executed at a fixed price of N31.00 per share on NGX as the lender’s stock price yesterday gained 9.9 per cent to close at N32.2 per share.