KEY POINTS
- Tony Elumelu stake in UBA now exceeds 16 percent.
- UBA extends rights issue to raise fresh funds.
- Profit and assets rise strongly in first half.
Nigerian banker and businessman Tony Elumelu has tightened his grip on United Bank for Africa Plc, raising his stake above 16 percent in one of Africa’s biggest lenders. The move, valued at about $211 million, cements his place among the wealthiest investors on the Nigerian Exchange.
The billionaire’s increased holdings follow successive rights issues that bolstered UBA’s balance sheet and helped it edge closer to meeting the Central Bank of Nigeria’s new minimum capital requirement.
Elumelu strengthens UBA stake with new shares
Elumelu, 62, who chairs Heirs Holdings, Transcorp Group and UBA, lifted his ownership from 7.43 percent at the end of 2024 to 16.38 percent by June 30, 2025. That represents 4.17 billion additional shares worth about $131 million, bringing his total to 6.72 billion shares.
The expansion reflects a pledge he made during UBA’s annual general meeting last year, where he urged shareholders to reinvest dividends. He himself committed all of his payouts to the bank’s capital-raising program.
UBA pushes rights issue amid recapitalization
UBA has repeatedly tapped investors to meet the central bank’s N500 billion ($333 million) capital threshold for international banks by March 2026. A N239 billion rights issue last year drew subscriptions above target, lifting capital to N355.2 billion.
In July, the bank launched another N158 billion offer at N50 per share. The subscription window, managed by United Capital Securities, was extended to Sept. 19 to allow more shareholders to take part.
Strong earnings boost balance sheet growth
The fundraising comes alongside improving financial performance. First-half profit climbed to N335.5 billion ($223 million) from N316.4 billion a year earlier. Interest income jumped nearly 33 percent to N1.33 trillion, while fees and commissions also rose.
According to Billionaire Africa, UBA’s total assets grew to N33.27 trillion by midyear from N30.32 trillion at year-end 2024, with equity and retained earnings also climbing. Directors declared an interim dividend of N0.25 per share, payable in October.
