Heirs Holdings boosts stake in UBA with N1.54bn share acquisition

Heirs Holdings Limited, the investment firm led by billionaire entrepreneur Tony Elumelu, has increased its equity in United Bank for Africa Plc (UBA) with the acquisition of 45,034,044 shares valued at approximately N1.54 billion.

The transaction was disclosed in a filing on the Nigerian Exchange, signed by UBA’s Company Secretary and Legal Counsel, Bili A. Odum.

According to the filing, the shares were purchased at N34.30 per unit between 22 and 23 May 2025, under the identification code NGUBA000001.

Before this latest acquisition, Heirs Holdings was already the only shareholder with more than a 5 per cent interest in UBA, owning 5.30 per cent of the bank’s total share capital, which equated to 1,814,003,900 shares.

Following the new purchase, Heirs Holdings now holds 1,859,037,944 shares, raising its overall stake to 5.43 per cent.

The development appeared to energise trading activity in UBA shares, with volumes reaching 60.7 million units on 22 May and 45.1 million the following day.

This increase in trading coincided with the bank’s strong first-quarter 2025 financial results, further reinforcing investor optimism. UBA’s stock climbed by over 3 per cent to close at N34.45 on 23 May.

UBA reported a pre-tax profit of N204.2 billion in Q1 2025, representing a 30.65 per cent rise compared to Q1 2024. The growth was largely fuelled by increased interest income, which rose by 36.09 per cent to N599.8 billion.

Income from loans and advances to customers reached N260.56 billion, reflecting a 31 per cent year-on-year increase. Revenue from investment securities also surged by 44.96 per cent to N291.8 billion, while earnings from cash balances amounted to N47.42 billion.

In addition to interest earnings, UBA generated revenue from non-interest sources such as fees and commissions. Electronic banking income stood at N47.84 billion, marking a 7.86 per cent increase. Transaction-related commissions brought in N29.66 billion, and maintenance fees contributed N10.39 billion.

On the balance sheet, customer deposits climbed to N22.8 trillion in Q1 2025, a rise of 4.43 per cent. Total assets grew by 4.58 per cent to N31.7 trillion.

Heirs Holdings Limited, a family-owned investment vehicle established by Tony Elumelu, focuses on high-growth sectors within Africa. As of March 2025, the firm managed an investment portfolio worth N15 trillion (approximately $9.8 billion).

Its interests span several industries, including financial services, technology, healthcare, real estate and hospitality, energy, and power.

The latest UBA share acquisition marks another step in Heirs Holdings’ continued investment in the financial sector, reinforcing its position as the only shareholder with a stake exceeding 5 per cent in the bank.