Tony Elumelu: How He Maintains Control of UBA Shares

As Group Chairman of the United Bank for Africa (UBA), Tony Elumelu has not only amassed wealth but has also maintained control of UBA shares.

Known for his strategic vision and astute business acumen, Elumelu has solidified his influence in UBA and positioned himself as a key player in the banking industry. His shares acquisition in UBA, one of the largest banks in Africa has cemented his position as one of the wealthiest investors on the Nigerian Exchange.

Let’s briefly examine the intriguing strategies employed by Tony Elumelu to maintain control of his UBA shares.

Elumelu’s recent acquisition of 70 million units of UBA shares 

Earlier this month, the Nigerian banker acquired 70 million shares in UBA to consolidate his holdings in the Lagos-based financial services group. The 70 million shares which amount to $1.21 million were facilitated through one of his investment vehicles, HH Capital Limited.

Elumelu’s latest purchase increased his stake in the bank from 6.96 per cent to 7.17 per cent. It also brings the market value of his stake in UBA to $42.57 million. Checks reveal that Elumelu controls UBA shares through HH Capital Limited 140,843,816; Heirs Holdings Limited 1,814,003,900 and Heirs Alliance Limited 231,086,468 totalling 2,185,934,184 shares.

With the deal, Elumelu’s shares through HH Capital had risen to 210,843,816. His total shareholding in UBA is over 2,255,934,184. 

Four of Elumelu’s family members acquired 6,434,616 ordinary shares

Beyond his personal acquisition, Elumelu has also gotten his family members to purchase UBA shares to strengthen his grip on the bank. This comes as four members of his family recently acquired 6,434,616 ordinary UBA shares. The shares were bought by Ugochukwu Elumelu, Onyinye Elumelu, Onyekachukwu Elumelu, and Toby Onyemaechi Elumelu.

The new transaction announced by Bili A. Odum, Group Company Secretary/Legal Counsel revealed that Onyinye Elumelu accumulated 2,070,366 shares at N8.70 per share while Ugochukwu Elumelu purchased 2,048,061 shares at N8.70 per share.

Elumelu’s influence as group chairman 

Another way Elumelu maintains control over UBA shares is through his influence as group chairman. His position gives him a significant amount of influence over the board of directors, responsible for setting the strategic direction of the bank. As Group chairman, the Nigerian Entrepreneur enjoys direct access to information bordering on shareholders and their investments.

Also, he has a good relationship with a number of other shareholders in UBA. This good relationship puts him in an advantaged position as it helps him build support for his position as the largest shareholder. It has in turn made it difficult for any other shareholder to challenge his control of UBA shares.

His donations through UBA Foundation

As the old saying goes, “He who pays the piper dictates the tune.” Over the years, Elumelu has made significant contributions to humanity through the UBA Foundation. One such donation is the multipurpose information technology centre given to his alma mater, Ambrose Ali University (AAU), Ekpoma, Edo State. His contributions through the UBA Foundation have increased the bank’s visibility in local communities.

The UBA Foundation actively promotes the socio-economic improvement of the communities in which UBA operates, with a particular emphasis on development in the areas of Education, Environment, and Economic Empowerment.