Nigeria’s renowned investment firm, the Honeywell Group, has embarked on a strategic move to bolster its value generation by acquiring additional shares in FBN Holdings Plc, the parent company of First Bank, Nigeria’s oldest bank.
In a significant transaction that has caught the attention of analysts, Honeywell Group, through its affiliate company Barbican Capital Limited, recently made a substantial investment in FBN Holdings. The move saw the company increase its stake to an impressive 15.1 percent, making it one of the largest single transactions of 2023.
Confirming the acquisition, Honeywell Group released a statement notifying FBN Holdings Plc and regulatory authorities about the purchase of 4,770,269,843 shares of FBN by Barbican Capital Limited. This latest acquisition, worth over N105 billion, supplements the previously disclosed interests by Honeywell Group’s affiliates.
The Managing Director of Honeywell Group, Mr. Obafemi Otudeko, outlined the advantages the company brings to FBN Holdings in a letter addressed to the Chairman of FBN Holdings Plc. The letter emphasized Honeywell Group’s long-term commitment to investing in businesses with exceptional growth potential. With a deep and longstanding relationship with FBN Holdings, as both customers and board members, Honeywell Group aims to foster value creation and enhancement.
The purchase was conducted through negotiated deals, and the Company Secretary of FBN Holdings, Adewale L.O Arogundade, confirmed Honeywell Group’s acquisition in a notification to the NGX (Nigerian Exchange Limited). The notification clarified that Barbican Capital Limited, owned by Obafemi Otudeko and Foluke Oyeleye, facilitated the purchase.
Obafemi Otudeko, who provides strategic direction and oversight to Honeywell Group’s portfolio companies and investments, has a rich professional background. Joining the group in 2003, he has led various significant initiatives, including successful capital market listings, capital raising, and the opening of notable ventures such as the Radisson Blu Hotel in Lagos.
The news of Honeywell Group’s increased stake in FBN Holdings has sparked curiosity among analysts. They eagerly await FBN’s response to the letter from Honeywell Group or the possibility of a meeting to discuss the implications of the 15 percent stake and future plans for the bank and its holding company.
With Honeywell Group’s extensive experience and commitment to long-term investments, market observers anticipate positive effects on FBN’s share value and are keen to witness the unfolding developments in this evolving financial landscape.