In the past four months, Blakeney LLP, one of the three major shareholders of UAC Nigeria Plc (UACN) has substantially reduced its stakes in the conglomerate.
Blakeney cashed out about N940million as proceed from UACN share dealings which happened from April 24 to August 5, details of the transactions seen by BusinessDay show.
The latest record on the sales of shares in UAC of Nigeria Plc by Blakeney LLP is the 80million it sold at N5.75 per share on 5th August. This transaction was valued at N460million. UACN is a holding company that owns businesses with some of Nigeria’s strongest brands and widest distribution.
On June 17, Blakeney LLP sold 40million units of the conglomerate at N7 each. This transaction is valued at N280million. Blakeney is one of the oldest and largest institutional investors in Africa and the Middle East. It has investments in both listed and private companies.
The Nigerian Stock Exchange (NSE) records show that on April 24, Blakeney LLP sold 6million units at N6.20 per share, valued at N37.7million. On April 28 it sold 4million units at N6.2048 per share valued at N24.81 million. Also, on May 11, Blakeney LLP sold 10million units of UACN shares at N6.80 per share valued at N68million, while on May 12 it sold 15million units at N6.90 per share valued at N69million.
These insider dealings were disclosed in notifications sent to the Nigerian Stock Exchange (NSE) by Godwin Samuel Company Secretary/Legal Adviser, UAC of Nigeria Plc. UACN has 2,881,296,580 shares outstanding. It is listed on the Diversified Industries subsector under the NSE Conglomerates sector of the Main Board. In trading week to August 7, its share price increased to N6.4. It had reached a 52 week high of N11.15 and corresponding week low of N4.50.
UACN revenue in half-year to June 30, 2020 decreased to N36.633billion from H1’19 high of N40.11billion. Gross profit decreased to N6.992billion in H1’20 as against N8.338billion in H1’19. The company’s H1’20 pre-tax profit closed lower at N1.033billion from N4.169billion in H1’19. UACN with 1486 employees is a diversified group organized around seven areas of activity: which include production and sale of animal feed (54.4percent of net sales).
The group also produces cereals and edible oils; manufacturing of food products (20.2percent): soft drinks, fruit juices, bottled water, snacks, ice cream, etc.; manufacturing and sale of paints (13.4percent); logistics services (7.4percent); development and management of residential and commercial real estate assets (2.8percent); fast food services (1.6percent); other (0.2percent): primarily financial services.
Recently, the board of directors of UAC of Nigeria announced that a binding agreement has been signed with Custodian Investment Plc for Custodian to purchase a 51 percent equity interest in UACN Property Development Company Plc (UPDC) from UAC. This agreement marked the beginning of a partnership between Custodian and UAC that will achieve both companies’ respective objectives in the real estate industry. It also marks a significant milestone aligned with UAC’s strategy to focus on its core businesses.
