Mr Tony Elumelu, the Chairman of United Bank for Africa (UBA) Plc has increased his stake in the pan-African financial institution.
The serial entrepreneur recently purchased additional 62.6 million shares of the company at the Nigerian Stock Exchange (NSE).
According to a notice of share dealing by an insider released by the lender, Mr Elumelu acquired the new stocks through one of the firms he has interests in, Heirs Holdings Limited.
The Delta State-born former banker bought the additional equities at an average price of N6.20 per unit in three tranches, the statement said.
In the disclosure, UBA said its Chairman first purchased 400,000 units at N6.15 per share; another 2 million units at N6.20 per share in the second tranche and then 60.2 million units at N6.25 per share at the third tranche.
Business Post gathered in order to mop up the 62.6 million shares of UBA at the stock market, Mr Elumelu had to pay about N388.4 million for the transaction.
Shares of UBA have taken a roller coaster movement in the past days at the stock exchange, falling to N6.05 per share at some point last week and then rising to N6.20 per share later, before closing at N6.15 per share last Friday. On Monday, the company’s stocks closed flat at N6.15 per share.
Analysts believe that the news of Mr Elumelu buying over 60 million units of the bank’s shares will trigger investors’ interest in the firm and may possibly push its share price higher in the coming days.
UBA is expected to release its financial statements for the half-year ended June 30, 2020, in the coming weeks and there are already insinuations that the Chairman may have bought the stocks because of an expected good number.
The lender is one of the publicly quoted firms that declare an interim dividend and this may make some investors to add shares of the bank to their portfolios.
Credit: businesspost.ng
