First Bank Shareholders Approve N150b Rights Issue and Appoint Femi Otedola as Director

In a recent Annual General Meeting (AGM), shareholders of FBN Holdings (FBNH), Nigeria's oldest financial services group, have approved the appointment of Lagos businessman, Mr Femi Otedola, as a non-executive director. This decision comes alongside the approval of an increase in authorized share capital and a proposed N150 billion rights issue. The board of directors has been given the mandate to determine the terms and conditions of the rights offering and dispose of any unclaimed rights.

The AGM was marked by intense intrigue surrounding the directorship of Otedola and the capital raising efforts. This caused a division among shareholders, with pro-Otedola shareholders pitted against renowned businessman and former chairman of the bank, Mr Oba Otudeko. Despite the conflicts, all resolutions, including the approval of audited financial statements, payment of dividends, and other ordinary business matters, were ultimately approved by shareholders.

Appointment of Samson Oyewale Ariyibi:

During the AGM, Mr Samson Oyewale Ariyibi, who was appointed as the Executive Director of Finance for FBN Holdings in 2022, was presented to shareholders and received their approval. This appointment further strengthens the leadership team of the organization.

Efforts to Prevent Suspension of the AGM:

Prior to the AGM, there were attempts to suspend the meeting through an ex parte court order obtained by a group allegedly sponsored by Otudeko. However, the board of FBNH successfully cleared all hurdles and confirmed their intention to proceed with the AGM. They filed a notice of appeal and motion on notice for suspension of execution and further hearing of the court order, pending the determination of the appeal filed at the Court of Appeal.

Importance of Otedola's Appointment:

The ratification of Otedola's appointment as a non-executive director serves as a statutory requirement and acts as a safeguard against alleged attempts by Otudeko to regain control of FBNH. Otudeko's previous directorship and chairmanship of the group were terminated by a regulatory intervention from the Central Bank of Nigeria (CBN).

The approval of Femi Otedola as a non-executive director of FBNH and the endorsement of a N150 billion rights issue during the AGM signify significant developments for Nigeria's oldest financial services group. These decisions demonstrate the shareholders' confidence in the leadership and future prospects of the organization. With the successful conclusion of the AGM, FBNH can now focus on executing its growth strategies and continuing to provide quality financial services to its customers.