Tony Elumelu, one of Nigeria’s most influential businessmen, together with his wife Awele Vivien, recently made a strategic investment decision by acquiring over 23 million new shares in United Bank For Africa (UBA). This massive acquisition of shares, made for $0.57 million, is part of the desire to consolidate its position within the thriving financial sector, thereby demonstrating its confidence in the growth potential of this Lagos-based banking institution .
This move by Elumelu and his wife proves to be a crucial step in strengthening their previous investments in UBA. Between November 13 and 17, this acquisition was finalized on the Nigerian Stock Exchange. With this transaction, the couple demonstrated their commitment to the bank, a major player in the African financial landscape.
The total investment of N480.26 million in the acquisition of the 23,196,236 shares of UBA, made through Elumelu’s personal investment company, HH Capital Limited, represents a vote of confidence in the bank’s performance . Elumelu already owned 7.39% of UBA shares before this acquisition, making him not only among the richest investors in the Nigerian stock market, but also among the most successful businessmen in Nigeria.
UBA occupies a leading position in the financial sector in Nigeria, with a presence in 24 countries on four continents. The decision by Elumelu and his wife reflects their belief in the bank’s financial performance. This came at a time when UBA recorded a whopping 287.2% growth in its profit after tax for the first nine months of 2023 from N116.04 billion to N449.3 billion.
This considerable increase in profits is attributed to several factors, including the revaluation of naira investment securities following the unification of the currency in the second quarter of 2023. In addition, net interest and other income also increased from N282. 5 billion to N443.1 billion, thereby strengthening the overall financial position of the UBA Group.