Nigerian insurance tycoon Wole Oshin acquires 19.5 million additional shares to boost control

Oluwatosin Racheal Alabi -

Key Points:

  • Wole Oshin acquires 19.5 million shares of Custodian Investment Plc, increasing his holdings to 27.39 percent.
  • The acquisition, worth $134,062.50, was executed in four tranches at an average price of $6.86 per share.
  • This transaction, dated June 7, 2024, was disclosed in a corporate notice viewed by Billionaires.Africa.

Nigerian insurance tycoon and Custodian Investment Plc Managing Director Wole Oshin has acquired an additional 19,531,250 shares in Custodian Investment at an aggregated price of $6.86 per share this acquisition reveals an additional investment of $134,062.50 in the company.

On June 7, 2024, he bought shares in four tranches; 5,000,000 shares at $6.83 each, 5,000,000 shares at $6.92 each, 4,531,250 shares at $7.02 each, and 5,000,000 shares at $6.70 each, the company also had a turnover volume of 21,063,758 ordinary shares at $6.83.

Oshin’s shareholding in Custodian Investment

Oshin is not just leading the company but also stands as its largest individual shareholder with a 27.05-percent stake, translating to 1,591,402,503 shares owned directly and through his company, Gratitude Capital Limited. With his latest acquisition, Oshin’s stake in the company will increase slightly to 27.39 percent.

Olakunle Ade-Ojo, the managing director of Toyota (Nigeria) Limited and a non-executive director on the board of Custodian Investment, holds a 15.74-percent stake in the company. He owns 1,229,365 shares, while his family’s company, Mikeade Investments Limited, holds 924,907,141 shares.

Due to his shareholding in Custodian Investment, Oshin benefitted from the company’s total dividend of $0.52 per share for the fiscal year 2023, which included an interim dividend of $0.10 for the first half of the year. Consequently, Oshin received a total dividend of $826,500 for fiscal year 2023.

Custodian Investment financials

Custodian Investment has grown to become one of Nigeria’s largest non-banking financial services groups. The group’s subsidiaries include Custodian and Allied Insurance, Custodian Life Assurance, Custodian Trustees, CrusaderSterling Pensions, and UPDC Plc.

In 2023 fiscal year, Custodian Investment posted a profit after tax of $12.805 million, a 122-percent increase from $5.79 million in the 2022 fiscal year, driven by a 32-percent growth in investment gains to $19.37 million from $14.69 million in 2022. However, the group’s insurance arms posted a net insurance service loss of $4.68 million as of 2023, compared to a $2.34-million gain as of 2022.

As of Q1 2024, Custodian posted a net insurance service gain of $4.68 million, marking a year-on-year growth of 5.5 percent from $4.485 million as of Q1 2023. As of Q1 2024, Custodian Investment posted a profit after tax of $6.955 million, marking a whopping 434.3-percent year-on-year growth from Q1 2023.

In one quarter, Custodian’s assets increased by 15.4 percent to $206.3 million, from $178.75 million as of fiscal year end 2023. Essentially, the group is on a run of form that positions it to produce increased returns on investment for shareholders.

For 2023 fiscal year, Custodian Investment produced a dividend yield of 7.2 percent based on its 2023 fiscal year end closing share price of $5.85, making it one of the best returning stocks on the NGX in 2023. On June 13, 2024, the share price closed at $6.08, marking a 10.95-percent decline from the previous session’s $6.83, with a year-to-date gain of 3.89 percent.

According to data tracked by Billionaires.Africa, since the beginning of the year, the value of his shares has grown by $1.89 million, pushing Custodian Investment’s total market value above $60 million.

As the largest shareholder and managing director, Oshin has a lot of influence, overseeing assets worth more than $450 million and focusing on improving operations and increasing shareholder wealth. His leadership has played a key role in making Custodian Investment one of the leading non-banking financial services companies in Nigeria.