Tony Elumelu and his wife, Awele Vivien, have purchased almost 23 million new shares in United Bank For Africa (UBA) in a strategic effort to strengthen their positions in the thriving financial services business.
The current transaction, which took place on the Nigerian Exchange between November 13 and 17, is a critical step in cementing their investments in UBA, a Lagos-based lender that is one of Africa’s most profitable financial services organizations.
Tony and Awele Elumelu paid N480.26 million for the new 23,196,236 shares, according to a recent notification of share trading made to the Nigerian Exchange.
On November 13, Elumelu spent N280.94 million through his personal investment company HH Capital Limited to acquire 13,571,795 UBA shares at an average price of N20.7. Simultaneously, his wife, Awele Vivien, invested N199.3 million in the Lagos-based lender, acquiring 9,624,441 shares.
Elumelu already owned 7.39 percent of UBA as of June 30, equivalent to 2,527,372,285 ordinary shares, making him not only one of the richest investors on the Nigerian Exchange but also one of Nigeria’s richest businessmen.
UBA is a significant player in Nigeria’s financial services sector, with a global reach covering 24 countries across four continents, including the United Kingdom, the United States, France, and the United Arab Emirates.
Elumelu and his wife’s recent action is seen as a show of confidence in UBA’s financial performance, reinforcing their interest in the bank. UBA recorded a spectacular 287.2 percent growth in earnings after tax in the nine-month period of its 2023 fiscal year, rising from N116.04 billion in the same period of 2022 to N449.3 billion.
This triple-digit percent increase in the group’s earnings is due to the revaluation of investment securities in naira terms following the Naira’s unification in the second quarter of 2023. Net trading and foreign exchange income of N450.25 billion was recorded during the year under review.
During the nine-month period, the group’s interest and non-interest income increased, with net interest income increasing from N282.5 billion to N443.1 billion and net fee and commission income increasing from N82.2 billion to N114.3 billion.