Economy
Eyebrows Raised as Key Investor in UAC Nigeria Sells 40 million Stocks
By Dipo Olowookere
News of a major shareholder in UAC of Nigeria Plc selling up to 40 million units of the company’s stocks recently has caused some raised eyebrows.
Some members of the investing community who spoke with Business Post on the matter said trades like this by a key investor of a firm like UAC Nigeria call for concern.
Last Wednesday, June 17, 2020, a “substantial shareholder” in UAC Nigeria, Blakeney LLP, freed its portfolio with 40 million units of the firm’s stocks.
According to a notice from the organisation, the shareholder sold the equities at a unit of N7, amounting to N280 million.
Since the global health crisis, Coronavirus, thickened in Nigeria in March 2020, the consumer goods sector of the economy, which UAC Nigeria also has a presence in, has been greatly hit.
Though the industry boomed in April when governments, corporate bodies, politicians, individuals and others distributed food items as palliatives to Nigerians because of a five-week lockdown imposed in Abuja, Lagos and Ogun States to suppress the spread of the virus, things took a worse turn when the restriction was eased in May.
In June, most businesses were allowed to operate, while citizens were told to use face masks whenever they were in public places.
But the buying power of consumers has made it difficult for the sector to boom like it did in April despite allowing them to go about their normal business activities.
Some firms have had to cut the salaries of workers and in other cases, the staff strength has been reduced, affecting the consumer goods industry, while those in few sectors yet to allowed to operate like the aviation and education sectors have not paid salaries to their employees.
“The volume of the shares sold by Blakeney is substantial and it is expected to make investors want to ask questions,” an active participant in the nation’s stock market, Mr. Adegbite Oloyede, submitted.
For Mrs Modupe Adediran, “Selling 40 million units of your holdings in a company says a lot about some things we retail investors do not know about. So, the worry is expected.”
“This is a normal situation and it is nothing new,” a stockbroker, who asked not to be named, said, but stressed that, “I will just advice investors to keep a close tab on the stock.”
Recall that last month, Business Post reported that Blakeney offloaded 10 million units of UAC Nigeria shares in two separate transactions.
In the first trade, the company sold 6 million stocks at N6.20 each, while for the second tranche, it sold 4 million units at about N6.21 each, raking about N62.0 million from the sales.
UAC Nigeria, a leading diversified company, operates in foods and beverage, real estate, paints and logistics sectors of the economy. Yesterday, the consumer goods index, was the heaviest loser at the market, going down by 1.38 percent.
At the market on Tuesday, June 23, 2020, UAC Nigeria was one of the nine price gainers, appreciating by 5 kobo or 0.71 percent to sell at N7.05 per unit.
By Adedapo Adesanya
The Economic and Financial Crimes Commission (EFCC) has intercepted eight trucks transporting suspected illegally mined solid minerals in Benue State as it intensifies the crackdown on illegal mining activities in the North Central region of the country.
This was disclosed in a statement by the anti-graft agency, on its official X handle, where it confirmed the arrests of the individuals involved.
The EFCC stated that the trucks were seized on Wednesday, March 19 in the Katsina-Ala Local Government Area of Benue State.
According to the EFCC, preliminary investigations revealed that the minerals—believed to be fluorite and iron stones—were mined from unauthorized sites in Logo Local Government Area of the state.
Business Post reports that the Benue State government had paused all mining activities, as it was responsible for some of the crisis in the state.
“We are determined to combat the illegal mining of Nigeria’s mineral resources and bring perpetrators to justice. The suspects will be charged to court as soon as investigations are concluded,” EFCC tweeted on X, formerly known as Twitter.
Illegal mining has been a growing concern in Nigeria, with authorities warning that the illicit extraction of solid minerals deprives the country of valuable revenue and contributes to environmental degradation.
The EFCC was involved in the issue of mining to quell further economic losses facing the nation.
According to the Minister of Solid Minerals, Mr Dele Alake, the government is losing trillions of Naira to unregulated and illegal mining activities.
He disclosed earlier this week that the Federal Executive Council (FEC) had approved N2.5 billion for the procurement of an integrated solution framework to combat illegal and unregulated mining activities.
He also disclosed that his ministry had opted for dialogue and collaboration with state governors rather than confrontation, saying many governors were initially unaware of the constitutional framework governing mining, but have now been engaged through discussions facilitated by the Nigeria Governors’ Forum (NGF).
Mr Alake noted that states must collaborate with federal authorities in addressing illegal mining and related criminal activities.
By Aduragbemi Omiyale
As part of the 2025 Global Money Week celebration, over 200 students were recently selected and equipped with essential financial literacy skills.
This seminar on money management tips was put together by the Nigerian Exchange (NGX) Group Plc, in collaboration with the Central Bank of Nigeria (CBN) and MinieMoney.
It underscored a shared commitment to fostering financial inclusion and equipping young Nigerians with the knowledge required for long-term financial well-being.
The event was organised to mark the Global Money Week, is a global initiative currently in its 13th edition designed to promote financial education among young people, ensuring they develop the critical thinking skills needed to make informed financial decisions.
The 2025 theme, Think Before You Follow, Wise Money Tomorrow, reinforces the importance of strategic financial planning from an early age.
The Head of Trading and Products at NGX, Mr Abimbola Babalola, highlighted the transformative power of financial literacy in shaping students’ futures.
“The financial choices you make today will determine the quality of your life tomorrow. Understanding saving, investing, and responsible money management early on will put you on the path to financial success,” he stated.
Also, the Assistant Director of the Consumer Protection Department at CBN, Mr Christian Mordi, introduced the CBN’s ‘Sabi Money’ platform, designed to enhance financial education nationwide.
“Financial literacy extends beyond numbers; it is about developing discipline, patience, and informed decision-making skills that foster economic security,” he noted.
On his part, the chief executive of MinieMoney, Mr Gbolahan Faniran, emphasized the importance of early investment habits and leveraging the power of compound interest.
“Achieving financial success is not about following trends but about making intentional money choices today that ensure a secure future,” he said.
Business Post reports that students from Vivian Fowler Memorial College for Girls, Dansol High School, Kith and Kin Educational Schools, Caleb British International School, Lagos Preparatory and Secondary School, and The Bells Comprehensive Secondary School attended the programme.
They engaged in insightful discussions on financial literacy, investment strategies, and capital market operations, with the added opportunity to experience firsthand the dynamics of the NGX trading floor.
By Adedapo Adesanya
The trio of Geo-Fluids Plc, Food Concepts Plc, and Industrial and General Insurance (IGI) Plc were extended the stay of the NASD Over-the-Counter (OTC) Securities Exchange in the red region for another trading day, weakening the alternative stock exchange further by 0.13 per cent on Thursday, March 20.
Geo-Fluids Plc lost 15 Kobo to trade at N2.70 per unit compared with the previous day’s N2.85 per unit, Food Concepts Plc declined by 6 Kobo to close at N1.49 per share versus Wednesday’s closing price of N1.55 per share, and IGI Plc tumbled by 2 Kobo to settle at 37 Kobo per unit, in contrast to the 39 Kobo per unit it traded a day earlier.
As a result, the NASD Unlisted Security Index (NSI) went down by 4.36 points to close at 3,373.62 points, in contrast to the previous trading day’s 3,377.98 points.
In the same vein, the market capitalisation of the bourse depreciated by N2.51 billion to settle at N1.948 trillion compared with the preceding day’s N1.951 trillion.
During the trading session, the volume of securities traded at the bourse crumbled by 99.4 per cent to 201,873 units from the 31.3 million units recorded on Wednesday, the value of securities bought and sold by the market participants moderated by 97.7 per cent to N776,509.51 from the N33.3 million quoted a day earlier, and the number of deals carried out by investors decreased by 26.1 per cent to 17 deals from 23 deals.
When the market closed for the day, Impresit Bakolori Plc remained the most active stock by value (year-to-date) with 533.9 million units sold for N520.9 million, followed by FrieslandCampina Wamco Nigeria Plc with 13.0 million units valued at N505.1 million, and Afriland Properties Plc with 17.5 million units worth N359.5 million.
In the same vein, Impresit Bakolori Plc remained the most active stock by volume (year-to-date) with 533.9 million units valued at N520.9 million, trailed by IGI Plc with 69.9 million units sold for N23.7 million, and Geo-Fluids Plc with 44.1 million units worth N88.9 million.
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