48 hours after the acquisition of a majority stake in First Bank of Nigeria Plc, by highly revered and astute billionaire, Femi Otedola, the First Bank share price of the oldest bank in Nigeria has gained about 2.45% in value, printing an all-year highest of N12.55 per share, findings by naijabusiness.com.ng reveals.
According to the data tracked by our analysts, the shareholders of the bank also gained about N10.8 billion in value since the famous deal was announced, as the bank’s market capitalization closed at N450.49 billion on Monday 25th of October, 2021, compared to the sum of N439.72 billion printed as of Friday, 22nd of October, 2021 (prior to the announcement of the deal).
Recall that famous business tycoon and philanthropist had recently (during the weekend) purchased a majority stake of about 1,818,551, 625 units of FBN shares, translating to about 5.07% of its total shareholdings. The billionaire acquired the majority stake through a vehicle, Calvados Global Services Limited, and also indicated interest to acquire. Although this development was initially denied by the Bank, however, the tier-1 bank later admitted the deal. It is pertinent to note that prior to the deal, no single individual or entity held up to 5% of the bank’s total shareholdings.
READ: First Bank MD Purchases Additional 17.1 Million Shares Worth N121.6 Million
Sequel to the deal, naijabusiness.com.ng reliably gathered that the Tier-1 bank sustained the rally throughout the day’s trading session as investors maintained a bullish stance trading over 350 million units of shares valued at N4.35 billion and taking the share price up 2.45% from the opening price of N12.25 to close the day at N12.55, although the shares traded as high as N12.90 during the trading session.
Our data revealed that First Bank opened trading for the year on January 4, 2021 (first official trading day of the year) with a share price of N7.85 per share, thereby implying a 59.9% return on investment for shareholders during the aforementioned periods.
