Nigerian multimillionaire businessman Tony Elumelu and his wife, Awele Vivien, have acquired more than 23 million new shares in United Bank For Africa (UBA) in a strategic move aimed at fortifying their positions within the flourishing financial services industry.
The latest transaction, executed on the floor of the Nigerian Exchange between Nov. 13 and 17, signals a pivotal step towards solidifying their investments in UBA, a Lagos-based lender which ranks as one of Africa’s most profitable financial services groups.
According to a recent notification of share dealing sent to the Nigerian Exchange, Tony and Awele Elumelu invested a total of N480.26 million ($0.57 million) in the acquisition of the new 23,196,236 shares.
Elumelu’s strategic move: Acquires 13.57 million UBA shares worth $0.33 million
Elumelu, through his personal investment company HH Capital Limited, spent N280.94 million ($0.33 million) to acquire 13,571,795 UBA shares at an average price of N20.7 ($0.0247) on Nov. 13. Simultaneously, his wife, Awele Vivien, invested N199.3 million ($0.24 million) to secure 9,624,441 shares in the Lagos-based lender.
As of June 30, Elumelu already held a 7.39-percent stake in UBA, equivalent to 2,527,372,285 ordinary shares, making him not only one of the wealthiest investors on the Nigerian Exchange but also one of Nigeria’s wealthiest businessmen.
UBA, a dominant player in Nigeria’s financial services sector, with an extensive footprint spanning 24 countries across four continents, including the UK, the United States, France, and the United Arab Emirates, occupies a pivotal position in the African financial landscape.
The recent move by Elumelu and his wife is viewed as a vote of confidence in UBA’s financial performance, further strengthening their interest in the bank. In the nine-month period of its 2023 fiscal year, UBA reported a remarkable 287.2 percent increase in profit after tax, soaring from N116.04 billion ($147.27 million) in the same period of 2022 to N449.3 billion ($570.2 million).
This triple-digit percent surge in the group’s profit is attributed to the revaluation of investment securities in naira terms following the unification of the Naira in the second quarter of 2023. The period under review witnessed a net trading and foreign exchange income of N450.25 billion ($571.4 million).
Enhanced value of the group’s assets also bolstered its interest and non-interest income during the nine-month period, with net interest income rising from N282.5 billion ($358.5 million) to N443.1 billion ($563.3 million), and net fee and commission income rising from N82.2 billion ($104.3 million) to N114.3 billion ($145.1 million).
