In a bold move that solidifies his authority over United Bank for Africa (UBA), billionaire entrepreneur Tony Elumelu has significantly boosted his ownership in the financial institution. This development follows his fallout with fellow billionaire Femi Otedola.
The disagreement between Elumelu and Otedola stemmed from allegations of betrayal. Otedola accused Elumelu of seizing his N2 billion ($20 million) worth of shares in UBA when Otedola faced financial difficulties in Nigeria.
Otedola further claimed that Elumelu employed his Transcorp shares to cover the interest on a loan acquired from the bank, despite Elumelu being the one who requested Otedola’s help in acquiring the bank through a $100 million deal.
Otedola, seeking retribution, secretly acquired 6.3% of Transcorp’s shares, amounting to 2.6 billion units, and compelled Elumelu to pay a substantial premium of 400% on these shares or risk losing his company. Consequently, Otedola received an estimated N32.5 billion for his initial investment of N6.7 billion, delivering a powerful lesson to Elumelu.
In a recent move to reinforce his position and avoid a similar occurrence, Tony Elumelu purchased an additional 70 million units of UBA shares on May 9 and another 70 million units on May 10, both at N8 per share. This strategic acquisition brings his additional acquisition to 140 million units, equivalent to N1.120 billion.
The additional shares by Elumelu is seen as a strategic maneuver to strengthen his grip on UBA and consolidate his control over the renowned financial institution. With this notable development, Elumelu is poised to maintain his prominent position in the Nigerian banking sector while further advancing his influence in the business realm.
