10.5bn Share Sales: SEC Grants “no objection” to FirstHoldCo

BY BONNY AMADI

The Securities and Exchange Commission (SEC) Nigeria has issued a “no objection” to recent off-market trade involving 10.4 billion shares of First HoldCo Plc.

On July 16, FirstHoldCo trading on the NGX Exchange, recorded a whopping turnover of 10.5 billion shares valued at N324.47 billion, almost 70 per cent of the new banking capitalization threshold of N500 billion for international banks as set by the Central Bank of Nigeria (CBN).

This triggered reactions by market watchers and speculations of forced takeover of which the attention of the capital market apex regulation was sought by many.

On that day, the volume of FirsHoldCo transacted shares on the NGX accounted for 95 per cent of the market’s total transaction volume, and 96 per cent of the top five transacted stocks for the day, and most pointed at the chairman of the holding company, Femi Otedola for initiating his kind of Transcorp styled failed acquisition, which was foiled by Tony Elumelu, majority shareholders of the conglomerate.

Meanwhile, the capital market regulator, led by Dr Emomotimi Agama, on Thursday said in a statement signed by Efe Ebelo, its head of external relations, that it issued the “no objection,” following due consideration and in full compliance with applicable requirements.

“There was no subsequent request for additional information from the Central Bank of Nigeria (CBN) following the conclusion of the transaction,” SEC stated.

“It is important to note that the Com- mission’s correspondence with the operators involved was not a query. Rather, it was an automated compliance mechanism designed to promote transparency and ensure proper conclusion of large transactions within the market,” the commission added.

Last Wednesday, the shares representing roughly 25 per cent of First HoldCo’s outstanding shares, exchanged hands in 17 negotiated deals at N31 per unit.

First HoldCo disclosed in a statement to NGX Regulation Limited on Friday that “the sellers were Barbican Capital Limited & affiliates and Leadway Group & affiliates, and the buyer was RC Investment Management Limited.”