Business
Otudeko, Otedola, Odukale lose N24bn as investments in FBN Holdings drop
The largest and majority investors in FBN Holdings, Oba Otudeko, Femi Otedola and Tunde Hassan-Odukale lost a whopping N24.64 billion in one week.
Their loss followed the reports of a discord between the largest shareholder, Otudeko, and the two other majority investors, Otedola and Odukale.
Recall that Otudeko bought 4.77 billion shares or 13.3 per cent stake in FBN Holdings two weeks ago. He reported his acquisition on July 7.
The acquisition was not well received by the majority shareholders, according to various reports, and they reportedly wanted Otudeko out of the company.
READ ALSO: N13.5bn judgement debt: Otudeko hits back at Ecobank
The alleged conflict within FBN Holdings affected the capital market’s confidence in the firm, leading to selloffs and profit-takers milking the gains recorded in the first week of this month after reports that an investor was buying large shares of the company.
FBN Holdings’ share had appreciated to N20.3 per cent on July 7 and also climbed to a peak of N22.3 kobo on July 10, but as of Monday, the share closed at N17.35 kobo.
The 14.53 per cent decline in FBN Holdings’ share value resulted in N24.64 billion loss in the total investment value held by Otudeko, Otedola and Hassan-Odukale.
Otudeko accounted for the highest loss, losing N14.07 billion, as the value of his investment fell to N82.76 billion, from N96.83 billion held on July 7.
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Otedola, who owns a 5.57 per cent stake, lost N5.89 billion to the selloffs, which dragged his investment in FBN Holdings to N34.68 billion, well below the N40.58 billion he previously held in the firm.
It was gathered that Hassan-Odukale also shared from the loss, accounting for N4.67 billion, considering he held N32.20 billion worth of investment in FBN Holdings before the investor apathy dragged it down to N27.52 billion.
Meanwhile, the N24.64 billion loss is part of a larger N105.89 billion loss recorded by the whole shareholders of FBN Holdings during the week in review.
The losses reduced the market valuation of FBN Holdings to N622.78 billion, from N728.67 billion.