First Bank’s share falls by 20% as Otudeko’s acquisition discourages investors

First Bank of Nigeria (FBN) Holding’s share price fell by 10% for the second day running as investors reacted negatively to the shareholder debacle currently unfolding at the bank.

The share price has fallen by 20% in the last two days after hitting a two-decade high of N22.3 per share.

It also closed trading at N17.45 per share on Thursday, July, 13, 2023, joining as one of the worst-performing stocks on the exchange.

Investors now seems to be reacting negatively to the shareholder squabble in the bank following the declaration of a 13.3% shareholding by Barbican Capital Ltd.

Analysts also suggest the letter from the solicitors of Ecobank and the response from Honeywell may have also rubbed off negatively on investors.

Regulators have also refrain from making a statement as the matter rages on adding to the skepticism over who will take control of the bank.

FBN Holdings was not the only bank that reported losses. Other members of the FUGAZ (top tier financial institutions in Nigeria) such as UBA, GT Bank, Access Bank, and Zenith Bank all recorded drops.

UBA fell by 8.45% while GT Bank, Access Bank, and Zenith Bank fell by 5.56%, 9.54%, and 2.04% respectively, as Stanbic IBTC also fell by 10%, Fidelity Bank 10% as well and FCMB 9%.

The banking All Share Index also fell 10.36%.

The Central Bank of Nigeria (CBN) is meeting with the directors of FBN Holdings to deliberate on the FBN Holding shares declared by Barbican Capital.