FBN Holdings: EGM Controversy Not Impacting Company’s Operations

•Stock price drops 1.27%

Kayode Tokede  

The management of FBN Holdings Plc, yesterday reacted to a report by THISDAY Newspaper, stressing that the call for an Extraordinary General Meeting (EGM) by two of the company’s shareholders does in any way impact the operations of the company.

The report had indicated that a group of shareholders of the company, with 10 per cent shares, requested the company to call an EGM under section 215 (1) of CAMA in which case they have 21 days to call the meeting.

Top on the agenda of the shareholders of the proposed meeting was for the removal of FBN Chairman, Mr. Femi Otedola and a non-executive/Deputy Chief Executive of Geregu Power Plc, Mr. Julius Omodayo-Owotuga.

But amid the report, investors in the oldest financial institution reacted to its stock price of the Nigerian Exchange Limited (NGX) yesterday. The stock price of FBN Holdings dropped by 1.27 per cent or N0.40 per share to close at N31.05 per share from N31.45 per share it opened for trading on NGX.

However, in a response, the company secretary, Adewale Arogundade, in a signed statement posted on NGX stated that “This matter does not in any way impact the operations of the Company; and all the businesses within the Group continue to provide uninterrupted services to its customers.

He added: “We assure our valued customers, shareholders, investors, other stakeholders and the general public that we are taking all necessary steps to protect the interests of the Company and its subsidiaries.

“The Group’s performance continues to improve, resulting in a higher market capitalisation even as we work towards surpassing the regulatory minimum capital well ahead of the deadline.

“In the meantime, the Registrar and Lead Issuing House are collating the returns from all receiving agents in respect of the Company’s Rights Issue which closed on December 30, 2024.”

He pointed out that FBN Holdings and its subsidiaries remain committed to the highest level of corporate governance.

FBN Holdings in April 2024 cancelled a scheduled EGM scheduled to be held virtually for the consideration and authorisation of the company to undertake a capital raise of up to N300 billion.

The financial institution recently closed a N150 billion rights issue on the Exchange. The rights issue offered on a one-for-six basis to existing shareholders. FBN Holdings has been battling over who holds the single largest share of the institution.

The Holdings, in its audited accounts for 2023, had put Otedola as the single largest shareholder with a 9.41 per cent stake in the financial institution. Otedola, however, has recently increased his share holding by massive acquisition of more shares. At the moment, his exact stake is unclear.

But data from the Central Securities Clearing System (CSCS), the widely accepted source for confirming share ownership, has Barbican Capital, which is affiliated with the Oba Otudeko-owned Honeywell Group, as the largest single shareholder with a 15.01 per cent stake.

Records kept by the bank’s registrars, Meristem Registrars & Probate Services Ltd, also showed that Barbican Capital is the single largest shareholder with 5,386,397,202 shares (5.38 billion) shares as of May 23, 2024.

Barbican Capital had sued FBN Holdings for wrongly stating its shareholding in its audited financial statement.