Two Pan African banks, the United Bank of Africa (UBA) and Access Bank, last week enhanced market credibility with the notification of transactions worth N390.05 million trades executed by directors of the two firms.
In the notification sent by UBA to the authorities of the nation’s bourse, the bank stated that Bili Odum, representing Workfield Foundation Limited by Guarantee, sold 1,775, 309 shares at N8.40 each and another 2,019 shares at N8.45 per share, which added up to 1,777,328 shares worth N14.929 million on January 10, 2020.
Similarly, Access Bank, Nigeria’s largest lender by assets, informed stakeholders through the authorities of the Nigerian Stock Exchange that Herbert Wigwe, its group managing director and chief executive officer, sold 55, 611, 001 shares, worth N375.12 million between January 10 and 15, 2020.
The breakdown shows that on January 10, 2020, Wigwe sold 3,607,819 shares at N10.80 per share worth N38.96 million. On January 13, 2020, he sold 20,140,000 shares at N10.70 per share worth N215.49 million. On January 14, 2020, Access Bank’s GMD sold 9,236,026 shares at N10.56 per share worth N97.53 million while on January 15, 2020, he sold 2,262,715 shares at N10.22 per share worth N23.12 million.
The post listing requirements require listed forms to notify the general public when a directors sell shares representing 5 percent and above of their share holdings in a firm.
“The implication of directors selling own shares depends on why they are selling. If the people perceive the directors do so because of a brewing problem, that will bring down the stock price. If otherwise, there is no problem. That is why insider trading is forbidden and SEC says you should always report directors’ transactions at 5 percent and above”, Saheed Bashir, managing director, Meristem Stockbrokers, said.
Last week Friday, investors traded 47.47 million shares of Access Bank to close at N10.80 per share representing 8 percent year to date gain.
Similarly, investors traded 65.74 million shares of UBA worth N584.80 million to close at N8.80 per share, and its share has gained 23.1 percent year to date.
Further, Access Bank, in continuation of its expansion across Africa, announced it has acquired a commercial banking license in the Republic of Kenya, while pursuing another commercial banking license in Cameroon.
“It will be recalled that the Board of Access Bank on October 28, 209 informed the Nigerian Stock Exchange that the Central Bank of Nigeria had granted its ‘no objection’ to the bank’s proposed acquisition of majority stake in Kenyan-based Transnational Bank Plc(TNB).
“We are pleased to announce that Access Bank has now secured the final approvals of all relevant regulatory authorities in Kenya in respect of the acquisition. The acquisition is in line with the bank’s strategic objective of becoming Africa’s gateway to the world and ties into its strategy to establish footprints in key African markets. The acquisition will further complement the bank’s franchise in Rwanda, Congo DRC and Zambia”, Sunday Ekwochi, Access Bank’s company secretary, said.
Before the latest acquisitions, Access Bank had seven foreign subsidiaries in the United Kingdom, Ghana, Rwanda, Congo DRC, Zambia, the Gambia and Sierra Leone. At half year 2019, the cumulative profit after tax (PAT) of the foreign subsidiaries amounted to N21.04 billion as against N13.64 billion at half year 2018. It recorded the highest PAT growth in Sierra Leone, 4,741 percent; Ghana, 83 percent and UK, 40 percent.
TELIAT SULE
