The Securities and Exchange Commission (SEC) has admitted that it endorsed the controversial sale of Oba Otudeko’s shares at First HoldCo Plc.

In a statement released on Thursday, July 24, by the head of external relations of the apex regulator in the Nigerian capital market, Efe Ebelo, the commission granted a “no objection” to the transaction following a thorough review of the proposed transaction and has no objections to it proceeding, provided all other regulatory requirements are met.

SEC clarification came a week after the investing public, including shareholders, raised concerns over the undisclosed details surrounding the transaction.

“The Securities and Exchange Commission (SEC) Nigeria wishes to clarify its position regarding the recent First Holdco Transaction,” Ebelo said.

“In line with extant laws and SEC regulations, the Commission granted a ‘no objection’ to the transaction after due consideration and in full compliance with applicable requirements.”
Otudeko sold approximately 20 percent of his stake in FirstHoldCo shares through Barbican Capital Limited.

The transaction generated considerable concerns, as the SEC or the Nigerian Exchange Limited (NGX) did not release any official disclosure regarding the transaction.

Following media attacks on the transaction, on July 19, FirstHoldco, the parent company of First Bank of Nigeria Limited, disclosed that Otudeko offloaded 6,314,116,229 units of shares at N31.00 per share, amounting to N195.74 billion, but without revealing the buyer or giving full details of the transaction.