Tony Elumelu has purchased an additional stake in the United Bank for Africa (UBA), one of the country’s leading lenders. His recent acquisition further strengthens his grip on the Lagos-based bank.
According to reports, the acquisition increased the market value of Elumelu’s stake in UBA to over $44 million. Elumelu started the year with a 6.96-per cent stake in UBA, which equated to 2,380,603,739 ordinary shares.
However, with his purchase of 70 million shares on the Nigerian Exchange, valued at $1.21 million, the Nigerian businessman has increased his stake to 7.17 per cent.
What inspired Elumelu’s purchase?
The purchase follows the impressive performance of UBA in the first quarter of 2023. Newsmen reports that the Lagos Bank recorded a remarkable 29.1 per cent increase in profit, rising from $90.1 million in the corresponding period of 2022 to $116.4 million.
The double-digit surge in the group’s earnings was sponsored by higher interest and non-interest income, alongside effective cost management strategies that kept expenses in check. Also, UBA’s share price surged past the N8 per share mark to reach N8.35 ($0.0181) per share.
The surge propelled the market capitalization of the Lagos-based banking group to $620 million and places Elumelu’s 7.17-per cent stake at $44.4 million. His stake in UBA further solidifies his position as one of the wealthiest investors on the Nigerian Exchange. Elumelu’s acquisition closely followed his wife’s investments in Transnational Corporation of Nigeria (Transcorp).
Recall that Elumelu’s wife, Awele, the chairperson of Avon Healthcare Limited earlier spent $14 million to acquire a 5.076-per-cent stake in Transcorp, a Lagos-based diversified conglomerate. Her investment further strengthened the family’s holdings in the conglomerate and positioned her as one of its largest shareholders.
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