Tony Elumelu’s net worth has long been a source of speculation in the financial world, but its recent jump of $20 million in just 55 days has stunned many.
This incredible financial leap not only highlights Elumelu’s commercial prowess, but also begs a deeper dive into the mechanisms and strategies that fuelled such success.
According to estimates, Elumelu’s shares in the United Bank of Africa, UBA, have increased in value by $19.33 billion in the last 55 days.
Elumelu’s 7.39% stake in UBA equates to 2,527,372,285 ordinary shares. Remember that Femi Otedola, a Nigerian businessman, already claimed that he offered Tony Elumelu $20 million to buy the requisite shares in UBA for the acquisition.
Elumelu has raised his stake in the bank since 2005. He indirectly owns certain shares through HH Capital Limited (140,843,816), Heirs Holdings Limited (1,814,003,900), and Heirs Alliance Limited (231,086,468 units).
Elumelu’s net worth has risen in tandem with the recent rise in UBA shares over the last 55 days. According to reports, the UBA’s share price increased from $0.0197 to $0.0219.
With a market value of $880.14 million, the bank became one of the most valuable entities on the Nigerian Exchange.
The bank is now the 13th most valued stock on the Nigerian Stock Exchange (NGX). Elumelu’s holding increased by 44.2 percent in the last 55 days, from $43.73 million on August 30, 2023 to $63.06 million.
The rise in UBA’s stock price can be ascribed to the revaluation of investment securities in naira terms. This occurred following the naira’s unification in the second quarter of 2023, which resulted in a $566.6 million foreign exchange revaluation gain in the first half of 2023.
Under Elumelu, UBA’s profit increased by 437.8 percent, rising from $94.7 million in the first half of 2022 to $512.4 million in the same period of 2023.