Operators Seek Due Diligence On RC Investment’s Acquisition of N323bn Stake in First Holdco

Capital market operators have called for thorough due diligence following the acquisition of a N323 billion stake in First Holdco Plc by RC Investment Management Limited, amid ongoing speculation about the true ownership and intentions behind the deal.

The transaction involved RC Investment purchasing approximately 25 per cent of First Holdco’s shares from sellers including Barbican Capital Limited, affiliated with Oba Otudeko, and Leadway Group affiliates. Oba Otudeko and Tunde Hassan-Odukale had collectively divested over 10 billion shares, triggering a surge in First Holdco’s share price.

The operators stated that N323 billion RC Investment Management Limited in First Holdco depends on the investor’s background, integrity, and long-term intentions.

With RC Investment acquiring a substantial shareholding, they called for a thorough evaluation of the investor’s background, intentions, and commitment to the company’s long-term growth and sustainability.

RC Investment Management was officially identified as the trustee for the shares deal involving First Holdco, in a trustee arrangement endorsed by the Central Bank of Nigeria (CBN).

However, while the company is said to be connected to Samuel Babatunde Sule, CEO of Renaissance Capital Africa; the ultimate beneficiaries remain undisclosed, fueling calls for clarity and transparency

The company has been said to be primarily controlled by Babatunde Sule who is listed as the key person with significant control (PSC).

On July 16, 2025, a total of N324.47 billion value for 10.47 billion units of shares in off-market block trading on First Holdco’ shares, took place on the floor of the Nigerian Exchange Limited (NGX) in a mega deal.

Speaking to LEADERSHIP on Sunday, the managing director and chief executive officer of APT Securities and Funds Limited, Garba Kurfi, emphasised that an investment exceeding N300 billion raises important questions regarding the investor’s background and their long-term intentions.

He pointed out that “this level of investment is closely tied to the recapitalization of First Bank, and it is essential to clarify the source and commitment behind such a significant stake to reinforce the bank’s sustainability. Long-term commitment from investors is vital for stabilising First Bank’s operations.”

Kurfi also highlighted the significance of the integrity of the individuals involved in the investment, noting that past challenges the bank had faced were often connected to issues of trust amongst previous investors.

Drawing comparisons to Aradel Holdings, he emphasised how investor behavior could impact market perceptions, reinforcing the need for transparency surrounding current investors.

Kurfi mentioned that with a 25 per cent ownership, stakeholders play a pivotal role in governance, making it essential to understand their character and intentions.

He voiced optimism about potential ownership changes, suggesting they could pave the way for resolving past challenges within First Bank and improve its future outlook.

Senior stockbroker Charles Fakrogha acknowledged some existing uncertainties surrounding RC Investments in the market, but stressed the importance of recognizing that entities with significant stakes, such as 25 per cent, often hold board positions, prompting necessary discussions around governance and integrity.

He expressed confidence in the due diligence performed by regulators concerning both buyers and sellers in this transaction, contributing to the maintenance of market integrity.

Fakrogha stated that the introduction of new players like RC Investment should not lead to immediate concerns; rather, a comprehensive evaluation over time is important.

He pointed out that the significant trading volume reflects robust investor confidence in First Holdco and the broader Nigerian capital market.

The managing director of Global View Capital Limited, Kebira Aruna, noted that share transfers primarily benefit the shareholders while underscoring the importance of strong governance led by a capable board and management team.

He stressed that this structure should focus on the company’s growth while allowing significant shareholders to contribute constructively without overstepping boundaries.

Aruna also highlighted the historical influence of previous sellers on the company, which has occasionally led to preferential lending practices within First Bank, contributing to notable financial write-offs.

He expressed optimism about the resilience of First Bank, believing that share transfers could reduce the influence of past leadership and enable a more independent board.

“With the current chairman’s impressive track record in economic management, Aruna believes there is great potential for elevating First Bank’s position in the market, particularly through collaboration and strengthened corporate governance, setting a promising foundation for the future,” he said.