The Elumelus Acquire 23 Million New Shares in UBA 

Tony Elumelu, a multimillionaire businessman from Nigeria, and his spouse, Awele Vivien, have made a calculated decision to strengthen their positions in the thriving financial services sector by acquiring over 23 million additional shares in United Bank for Africa (UBA).

The most recent deal, which was completed between Nov. 13 and Nov. 17 on the Nigerian Exchange floor, represents a critical step in securing their investments in UBA, a Lagos-based lender that is among the most profitable financial services companies in Africa.

In order to purchase the new 23,196,236 shares, Tony and Awele Elumelu contributed a total of N480.26 million ($0.57 million), according to a recent notification of share dealing submitted to the Nigerian Exchange.

On November 13, Elumelu paid N280.94 million ($0.33 million) through his personal investment firm, HH Capital Limited, to purchase 13,571,795 UBA shares at an average price of N20.7 ($0.0247). In order to obtain 9,624,441 shares in the Lagos-based lender, his wife, Awele Vivien, invested N199.3 million ($0.24 million) at the same time.

Elumelu is among the wealthiest businessmen in Nigeria as well as one of the wealthiest investors on the Nigerian Exchange, having, as of June 30, acquired a 7.39 percent stake in UBA, or 2,527,372,285 ordinary shares.

UBA holds a crucial position in the African financial scene. It is a leading player in Nigeria’s financial services industry, with a broad presence spanning 24 countries on four continents, including the UK, the US, France, and the United Arab Emirates.

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).

The revaluation of investment securities in naira terms subsequent to the unification of the naira in the second quarter of 2023 is the reason for the triple-digit percent increase in the group’s profit. Net trading and foreign exchange income during the review period totaled N450.25 billion ($571.4 million).

A rise in net interest income from N282.5 billion ($358.5 million) to N443.1 billion ($563.3 million) and a rise in net fee and commission income from N82.2 billion ($104.3 million) to N114.3 billion ($145.1 million) during the nine-month period were also supported by the group’s enhanced asset value.