A key shareholder in Nigeria’s oldest banking group, First Bank Holding Company Plc (First Holdco), Oba Otudeko, has exited the group following a N323.33bn block deal on the Nigerian Exchange Limited.

The transaction saw 10.43bn ordinary shares of First Holdco traded in 17 off-market, negotiated deals at an average price of N31 per share. The block deal represents a 25 per cent majority stake in the financial holding company, which has 41.87bn outstanding shares.

The negotiated window on the NGX allows parties to pre-arrange the price and terms of large-volume transactions before formal execution on the exchange.

Although the identity of the buyer remains undisclosed as of press time, sources said relevant filings would be made in line with regulatory requirements. The Central Bank of Nigeria is expected to screen and approve any new significant investor in a banking institution.

Otudeko’s exit marks a turning point in the group’s ownership structure. Market analysts say the transaction clears the path for a fresh phase of reforms being championed by Otedola, who is now the chairman of First Holdco.

The development triggered a positive reaction on the NGX, with First Holdco’s share price climbing to N32, pushing its market capitalisation above N1.3tn. The transaction also drove a surge in overall market activity, with total turnover jumping by 807 per cent to 11.67bn shares valued at N363.41bn.

Reacting to the development, the National Coordinator of Progressive Shareholders Association, Boniface Okezie, said the deal placed the bank on a solid footing ahead of the ongoing banking sector recapitalisation.

He said, “First Bank is now positioned on the right side of history. The transaction gives them the breathing room to tidy up their capital position, and given their legacy as the oldest bank in the country, they are in a strong position to outpace younger banks in the recapitalisation race.”