Elumelu buys extra 6 million Seplat shares, expanding stake to 21%

Tony Elumelu, billionaire chairman of Heir Holdings limited, has expanded his stake at Seplat Energy Plc, where he sits as non-executive director, with an acquisition of additional six million shares, increasing his combined equity holding to 21.07 percent.

According to a regulatory disclosure filed on September 30 across both the Nigerian Exchange and London Stock Exchange, Heirs Energies purchased the supplementary tranche at £8.87 per share, representing a total investment of roughly £53.22 million.

The purchase price reflects a premium nearly triple that of Heirs Energies’ initial entry valuation.

The acquisition brings his combined shareholding to 21.07 percent of Seplat’s 599.94 million issued ordinary shares, up from the prior 20.07 percent threshold.

Based on the stock market’s September 30 closing price of N16,000.10 on the Nigerian Exchange (NGX), the total position is valued at approximately N2.02 trillion ($1.52 billion).

The equity acquisition coincides with sustained market momentum for the energy company. Seplat shares recorded a 40.8 percent surge during the third quarter, advancing from N11,363.90 on July 1 to its end-of-September level, accumulating a year-to-date appreciation exceeding 175 percent.

The equity reached an all-time high of N16,000 on September 24 following a single-session gain of 7.3 percent.

This third-quarter rally appreciated the capital value of Elumelu’s baseline 120.4 million shares by approximately $459 million, expanding its aggregate market value from $991.3 million to $1.45 billion.

In recent times, institutional demand for Nigerian upstream assets has surged by global macroeconomic factors, notably as Brent crude surpassed $100 per barrel in September due to supply disruptions in the Strait of Hormuz.

Heirs Holdings had earlier secured a 20.07 percent stake of 120.4 million shares from Maurel & Prom, a French energy group at 305 pence per share, in a transaction valued at $496 million.

Following this recent capital deployment, Heirs Energies’ direct holding has expanded to 27.94 million ordinary shares. (BusinessDay)