Access Bank GMD, Herbert Wigwe, Suffers Investment Loss, Tightens Control Over Firm

The value of investment owned in Access Bank by the Group Managing Director/Chief Executive Officer, Herbert Wigwe, has fallen despite increasing his stake.

As of December 31, 2021, Wigwe owned 1.51 billion shares of Access Bank worth N14.11 billion, however, the banker lost N1.31 billion in investment value as of November 4, 2022, Prime Business Africa analysis showed.

The loss was recorded despite Wigwe raising his total shares, direct and indirect, to 1.60 billion last week Friday after buying additional shares of 84.5 million.

Wigwe had acquired the shares in the Nigerian stock exchange on November 3, when he bought 45 million shares, and November 4, when he purchased 39.5 million shares.

The investment banker bought the 84.5 million shares at the cost of N671.77 million, with each share valued at N7.95 kobo, according to corporate document obtained by Prime Business Africa.

Regardless of Wigwe’s total shares rising to 1.60 billion, it is worth N12.73 billion as of November 4, which is below the N14.11 billion his investment was worth at the end of last year when he held less shares of 1.51 billion.

The drop in the chief executive’s investment value is due to the capital market undervaluing Access Bank’s share when compared to the N9.30 kobo each share was worth as at the end of December 2021.

Although, the loss has reduced to N1.13 billion, considering the share value has risen to N8.10 kobo after Monday’s trading activity.

The acquisition by Wigwe will increase his influence in the firm and his controlling stake in the company to 4.5 per cent, from the 4.2 per cent stake he held as at December 31, 2021.

Meanwhile, Wigwe’s share purchase followed the acquisition of 51 per cent majority shareholding in Finibanco Angola S.A by Access Bank from Montepio Holding SGPS S.A.

This will give the Nigerian commercial bank access to Finibanco’s total asset worth of $300 million, as well as over 20 branches in Angola.