Fakoyejo OlalekanAlain Nkontchou, the chairman of Ecobank Transnational Incorporated (ETI), has acquired new shares to increase his controlling stake in the financial institution.
Prime Business Africa gathered that Nkontchou acquired 62.33 million shares through his investment vehicle, Enko Opportunity Growth Fund, between June 14 to June 26, 2023.
In a corporate disclosure obtained on Saturday, but dated July 20, 2023, Prime Business Africa learnt that Nkontchou spent N917.54 million to acquire the 62.33 million shares.
The acquisition raised the total shares held by the Cameroonian in ETI to 942.54 million as of June 26, 2023, up from 880.21 million shares held at the end of 2022.
After the acquisition, Nkontchou’s total investment value also rose to N13.90 billion as of Friday, July 20, 2023. This is higher than the N9.33 billion his investment was valued at the end of last year.
The Cameroonian now owns a 5.13 per cent controlling stake in Ecobank’s parent company (ETI), making him the only individual to have a 5 per cent and above stake in ETI.
Nkontchou has been increasing his stake in ETI in the last three years, as his stake was 0.15 per cent as of December 31, 2020.
He raised the stake in 2021 to 1.44 per cent. The next year, Nkontchou accounted for a 4.79 per cent stake, before raising it further to 5.13 per cent in June 2023.
Aside from Nkontchou, the other investors with over 5 per cent stake and above are institutional investor, Nedbank Group Limited, with 28.91 per cent, and pension fund manager, Government Employees Pension Fund, which owns 18.36 per cent.
Meanwhile, his acquisition comes at a period the bank was ordered to pay Honeywell Flour Mills N72.2 billion for damages caused when the company suspended the manufacturer’s accounts.
Honeywell Flour sued Ecobank for freezing its accounts in a bid to recover N13.5 billion loan owed by the manufacturer and its former owner, Oba Otudeko.
Both Honeywell Flour and Otudeko have denied owing Ecobank, but the lender alleged that a Supreme Court ruling had affirmed the debt.
Follow Us