First Bank Holdings shares fell by -3.19 percent after the Bureau of Public Enterprises (BPE) announced billionaire businessman Femi Otedola’s investment vehicle as one of the pre-qualified 16 firms for the privatisation of five National Integrated Power Projects (NIPPs) on Thursday.
The BPE selected Amperion Power Distribution Company Limited, owned by Otedola in the bid for five power plants – Geregu Generation Company Limited, Benin Generation Company Limited, Omotosho Generation Company Limited, and Calabar Generation Company Limited, and Olorunsogo Generation Company Limited.
Ripples Nigeria had reported that Otedola sold N7.96 billion worth of shares in preparation for the bid, almost nine months after he first bought 2.71 billion shares to become First Bank’s majority shareholders.
The investment earned him a profit of N3 billion, which is a little lower than the amount he spent to acquire the Geregu Power Plant in 2013.
Following the announcement, the FBN Holdings stock value dropped from N10.95 kobo to N10.6kobo per share.
This week, the company’s share depreciated by -9.43 percent from last week’s N11.6kobo per share.
Within five days of trading, FBN market capitalization has dropped by N35.89 billion from N416.38 billion to N380.49 billion.
Otedola’s sell-off had also contributed to the company failing to make Ripples Nigeria’s best performing bank stocks for H1 2020.
With uncertainty surrounding Otedola’s future investment in FBN, the bearish sentiment is likely to continue until the deal for the power plant is secured.