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Board chairmen, MDs buy additional N145bn shares

Billionaire shareholders in some leading banks and other companies have raised their stakes, it has been learnt.

Findings showed they acquired N145bn additional shares in their companies, according to findings by The PUNCH.

Capital market reports indicated some majority shareholders of listed companies, who are mostly bank managing directors and chairmen, acquired over 20 additional billion shares

Based on disclosures of insider dealings, the shares were acquired between January and August this year with increased activity observed in April.

Billionaire businessman Oba Otudeko’s Honeywell Group through an affiliate, Barbican Capital Limited, reportedly bought 4,770,269,843 shares of FBN Holdings Plc in a cross deal worth N87.8bn.

FBN in its corporate notice to the Nigerian Exchange Limited put the equity stake of Barbican Capital Limited in the bank at 13.3 per cent.

The purchase is however still a matter of investigation by the Securities and Exchange Commission. Otudeko was chairman of First Bank until 2019.

The newly-appointed Group Managing Director/Chief Executive Officer, Sterling Financial Holdings Company Plc, Yemi Odubiyi,  in early August, acquired 100m units of the shares of the lender at N3.54 per unit, bringing the value of the deal to N354m.

Also, a non-executive director in the Holdco and Chief Executive Officer of Sterling Bank, Abubakar Suleiman, increased his stake in the business with the purchase of 50m units in a deal worth N168m.

Tengen Holdings (Mauritius) Limited, a company related to the Group Chief Executive Officer of Access Holdings, Herbert Wigwe, acquired over 1.3 billion shares of the Holdco this year.

The shares were bought at prices ranging from N10 to N15.25 within the period. The entire transaction is valued at over N14.496bn

The Chairman of Zenith Bank Plc, Jim Ovia, increased his stake in the bank by 6.75m shares valued at N203.875m in two different transactions in the first half of this year. As of December 2022, Ovia held 3,546,199,395 units of the bank’s shares directly and 1,523,928,375 units indirectly.

Zenith Bank Group Managing Director, Ebenezer Onyeagwu, who held 82,176,078 units of shares of the bank as of December 2022, increased his stakes by 8,000,000 in transactions worth N191.802m. Other directors of the lender who increased their stakes include Adobi Nwapa with four million shares worth N96.217m; and Akindele Ogunranti who bought 4.121m shares valued at N98.307m.

The Chairman of UBA, Tony Elumelu, acquired additional shares through a company related to him and his immediate family members, HH Capital Limited. In all, over 89 million shares of the lender were acquired in deals valued at N742.730m.

The Group Managing Director of UBA, Oliver Alawuba, also boosted his stake in the bank with the purchase of over 39 million shares between December 2022 and June 2023. The transactions were worth over N431m. In its 2022 audited report, UBA said Alawuba’s shareholding as of December 31 was 1,593,248.

Business moguls also acquired additional stakes in banks and other companies.

Billionaire Femi Otedola, made a statement with his purchase of over five per cent stake in indigenous conglomerate, Transcorp Plc. He has since divested but the market has seen billionaires and other stakeholders raise their stakes with

Billionaire businessman, Elumelu, and entities linked to him acquired additional stake in Transnational Corporation Plc, according to corporate filings with the NGX.

In April, Elumelu through his investment vehicle, HH Capital Limited had acquired a total of 11,990,957,350 units, representing 29.5 per cent of the company’s total shares.

Within the period under review, Elumelu had through his wife, Dr Awele Elumelu, HH Capital acquired over 13 billion units of the company’s shares in deals worth over N36bn.

On June 23, 2023, the Managing Director, Transcorp, Dr Owen Omogiafo, acquired 15,183,683 units of the conglomerate at the rates of N3.14, N3.15 and 3.13 per share. The value of her acquisition was over N47m. Omogiafor held 12,634,188 units of shares as of December 2022.

Billionaire and founder of Bua Cement, Abdul Samad Rabiu in July acquired 45 million units of the company’s shares at the rate of N85 per share bringing the value of the transaction to N3.82bn.

According to the 2022 audited report of the company, Rabiu was the majority shareholder of the company holding 19,044,995,225 billion shares, which was a 56.24 per cent stake of the issued share capital. He also held indirectly 645,565,918 (1.91 per cent).

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