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Herbert Wigwe could earn over $3.02 million from Access Bank dividend

Access Bank Plc CEO Herbert Wigwe could earn over $3.02 million from the bank’s dividend in 2020. 

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Illustration: Financial markets. ©Billionaires.Africa

Herbert Wigwe, Nigerian businessman and CEO of Access Bank Plc, could earn over N1.152 billion ($3.02 million) after the bank declared a N0.55 ($0.0014) dividend for 2020. 

The board recommended a final dividend of N0.55 ($0.0014), bringing the total dividend to N0.80 ($0.0021) per share for 2020.

By calculation, 1.441 billion x N0.80 = N1.152 billion ($3.o2 million).

According to Market Screener, the bank recorded gross earnings of N764.7 billion ($2.007 billion), up by 14 percent from N666.8 billion ($1.8 billion) in 2019. Profit before tax rose by 13 percent to N125.9 billion ($330.45 million) from N111.9 billion ($293.7 million).  

It earned well despite the high cost of operation in the COVID-19 pandemic. According to Wigwe, the bank’s “resilient business model ensured that the group adapted to accommodate the resultant macro-economic downturn and headwinds of the COVID-19 pandemic.”

Events in 2020

In January 2020, Nairametics reported that concerns were raised when the CEO sold 6.81 percent (84.46 million units) of his direct and indirect stake in an insider deal filed on the Nigerian Stock Exchange on 15th and 16th, respectively. The deals were worth N297.82 million. 

However, Wigwe purchased 3,094,853 shares for N6.81 and another 50,000 shares at an aggregate price of N21.42 million ($56,208.47). Of the bank’s 15 board members, Wigwe holds the highest stake with 201.23 million direct shares and 1.24 billion indirect shares. 

His indirect shares are held through United Alliance Company of Nigeria Ltd., Tengen Holdings (Mauritius) Ltd. and Trust and Capital Ltd. His combined shares are approximately 1.441 billion shares. 

Wigwe joined the bank in 2002 from Guaranty Trust Bank and was later appointed group managing director on Jan. 1, 2014. Bank Naija estimated his 2020 net worth at around $68.5 million.

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Cameroonian multimillionaire banker Alain Nkontchou’s stake in Ecobank now worth $3.76 million

Nkontchou controls a beneficial 0.98-percent stake in the bank.

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Alain Nkontchou.

Cameroonian multimillionaire banker Alain Nkontchou’s stake in Ecobank Transnational Inc., a leading pan-African banking conglomerate, is now worth N1.56 billion ($3.76 million).

Ecobank is the leading independent regional banking group in West and Central Africa, serving wholesale and retail customers in 36 African countries.

In the first nine months of 2021, the Togo-based financial services conglomerate reported an 847-percent growth in profit from $27 million to $256 million thanks to improved efficiency in its banking operations.

Nkontchou, who holds a leadership position in the pan-African banking group as a chairman and non-executive director, controls a beneficial 0.98-percent stake, amounting to 179,019,674 shares.

As of press time, Jan. 18, shares in Ecobank on the Nigerian Exchange were trading at N8.7 ($0.021), unchanged from their opening price on the local bourse this morning, as bearish and bullish sentiments were cleared out evenly.

At this price, the market value of his 0.98-percent stake in the pan-African bank is valued at N1.56 billion ($3.76 million).

Nearly a month ago, Nkontchou spent N1.13 billion ($2.35 million) to complete the acquisition of an additional 0.72-percent stake, which amounts to 131,379,263 ordinary shares in the bank.

The deal saw his stake rise from 0.26 percent, or 47,640,411 shares, to 0.98 percent, or 179,019,674 shares. Since he acquired the shareholding, the market value of his stake has expanded from N1.32 billion ($3.19 million) to N1.56 billion ($3.76 million).

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Nigerian mogul Abdul Samad Rabiu’s food business posts huge profit since listing

The news comes despite a slump in fortified sugar sales and a single-digit increase in its direct production costs.

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Abdul Samad Rabiu.

Led by Nigerian billionaire businessman Abdul Samad Rabiu, the newly consolidated food business BUA Foods Plc has reported more than $39.9 million in profit in the first nine months of 2021.

The news comes despite a slump in fortified sugar sales and a single-digit increase in its direct production costs.

Its recently published unaudited financial statement for the first nine months of 2021 represents its first financial filing since its shares were listed on the Nigerian Exchange nearly two weeks ago.

Compared to last year’s figures, BUA Foods’ net profit rose by 6.8 percent from N15.53 billion ($37.5 million) in the first nine months of 2020 to N16.56 billion ($40 billion) at the end of the first nine-month period of 2021.

Its resilient financial performance in 2021, which led to the single-digit surge in profit, was driven by a 152-percent rise in sales by industrial sugar, pharmaceutical and food and beverage manufacturing companies.

Its performance during the nine-month period was also supported by the increased sale of sweeteners coupled with a decline in operating expenses from N2.4 billion ($5.8 million) in 2020 to N1.37 billion ($3.3 million) in 2021.

As a result, BUA Foods’ operating profit rose from N18.96 billion ($45.8 million) to N21.25 billion ($51.3 million), while its net profit increased by 6.8 percent.

During the nine-month period, the company’s total assets grew by 5.36 percent from N348.65 billion ($841.5 million) to N367.35 billion ($886.7 million), while the retained earnings linked to its shareholders increased from N112.7 billion ($272 million) to N129.3 billion ($312.1 million).

As of the opening of the Nigerian Exchange this morning, Jan. 18, shares in BUA Foods were trading at a price of N61.8 ($0.149) per share, 6.3-percent lower than their opening price on the local bourse yesterday.

Since listing on the Nigerian Exchange 12 days ago, BUA Foods’ stock price and market capitalization have soared by more than 54 percent thanks to sustained investor buying interest in the company.

The upward price movement saw the consolidated food company become the most capitalized consumer goods company on the Nigerian Exchange ahead of Nestle Nigeria Plc.

The price bump also pushed the net worth of Rabiu above the $7.9-billion mark, making him the second-wealthiest man in Nigeria ahead of telecom mogul Mike Adenuga.

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South African billionaire Michiel Le Roux gains more than $141.4 million in 27 days

Le Roux founded Capitec Bank, one of South Africa’s largest retail banks, about 21 years ago.

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South African billionaire Michiel Le Roux.

South African billionaire bank founder Michiel Le Roux has seen his net worth skyrocket by more than $141.4 million in the past 27 days, as shares in South Africa’s leading retail banking group, Capitec Bank, soar by 8.4 percent.

Le Roux, who founded Capitec Bank, one of South Africa’s largest retail banks, about 21 years ago, holds a substantial 11.41-percent stake amounting to 13,190,043 shares in the Stellenbosch-based banking group.

The multimillion-dollar surge in his net worth since Dec. 21, 2021 can be linked to a surge in the market value of his stake, as shares in Capitec Bank soared above the $138-per-share mark.

As of afternoon, Jan. 17, shares in the group were worth R2,132.12 ($138.57) per share, 1.91-percent lower than their opening price on the Johannesburg Stock Exchange that morning.

At that price, the market value of Le Roux’s stake is worth more than $1.82 billion, while the bank’s market capitalization is $16.4 billion.

Shares in the bank have increased from a price of R1,967.16 ($127.85) at the closing of trading on the Johannesburg Stock Exchange on Dec. 21, 2021 to R2,132.12 ($$138.57) at the time of drafting this report.

This translates to an 8.4-percent gain for the bank’s shareholders since December 2021.

As a result of the price bump, the market value of Le Roux’s stake has increased from N25.95 billion ($1.69 billion) to R2.18 billion ($1.83 billion) between Dec. 21, 2021 and Jan. 17. This led to a total R2.18-billion ($141.41 million) gain for the billionaire in the past 27 days.

In an effort to protect his stake in Capitec from downside risks and leverage it to secure debt funding, Le Roux executed hedging and financing transactions on 1.25 million shares in Capitec Bank against the volatility in the stock market.

The businessman completed the collar transaction in four tranches between August and December. At the current market price, the transaction is worth R2.5 billion ($157.2 million).

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