How Oba Otudeko Made N690m Profit in a Day from Honeywell Flour Mills

Honeywell Group founder and Chairman, Oba Otudeko, on Tuesday, April 20, profited N690 million from the company in a single session on the Nigerian Stock Exchange.

Otudeko, who is the single majority shareholder of Honeywell Flour Mills, recorded the gains after local investors bid up the company’s shares. The total issued shares of the company are 7.93 billion units and the billionaire’s ownership stake runs to about 5.29 billion units.

According to Nairametrics, Otudeko’s 75 percent ownership stake in Honeywell Flour Mills is held indirectly through Siloam Global Services Limited. The worth of his shares in the company was N6.88 billion as at the market open on Tuesday and jumped to N7.57 billion at the close of trading the same day.

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What happened?

Otudeko, who also owns a stake in Radisson Blu in Lagos, netted the gains due to buying pressure in Honeywell’s shares which surged by 10 percent from N1.30 when the market opened yesterday to N1.43 at the close of the market.

Following this, Honeywell Flour Mill’s market capitalization moved up by about N1.03 billion on the Nigerian stock exchange on Tuesday. The capitalization as of two days ago (Monday) was N10.31 billion and climbed to N11.34 billion at the close of the market on Tuesday.

Background

Born Ayoola Oba Otudeko in Ibadan, Oyo State, South-West Nigeria on August 18, 1943, to a royal family, Otudeko studied Accountancy at the Leeds College of Commerce Leeds, Yorkshire, United Kingdom (which is now part of the Leeds Beckett University). He is a Chartered Banker, Chartered Accountant and a Chartered Corporate Secretary.

Otudeko is a national honour beneficiary in Nigeria – Commander of the Order of the Federal Republic (CFR). He also serves as chair of FBN Holdings and founder of the Oba Otudeko Foundation.

In 2014, Forbes magazine listed him as one of the 50 richest people in Africa with a net worth of $550 million. His multi-sector Nigerian company operates across oil and gas, flour milling, real estate, marine transportation, amongst others.