Stanbic IBTC Holdings Plc, a financial institution in Nigeria, saw its share price rise by 5.5% on Monday after being confirmed as the lead arranger for UAC of Nigeria Plc’s acquisition of CHI Limited. The lender provided comprehensive financial support that enabled the successful completion of the deal.
According to data from the Nigerian Exchange Limited (NGX), Stanbic IBTC — the most expensive banking stock on the bourse — gained from ₦109 ($0.07) on Friday to ₦115 ($0.08) on Monday, maintaining that price through Tuesday’s close.
In a statement, the Lagos-headquartered group said it acted as Global Coordinator for the transaction through its investment banking subsidiary, Stanbic IBTC Capital Limited, structuring a bespoke financing package tailored to UAC’s strategic objectives.
Oladele Sotubo, Chief Executive of Stanbic IBTC Capital Limited, said the milestone underscores the bank’s strength in providing innovative deal solutions.
“This transaction demonstrates our ability to deliver integrated solutions. We are proud to have partnered with UAC on a transformative acquisition that not only advances their growth ambitions but also contributes to Nigeria’s economic development,” Sotubo said.
Beyond arranging the facility, Stanbic’s Global Markets division managed foreign exchange exposure using hedging solutions, while its Escrow Services unit handled settlement flows to ensure seamless execution. Neither party disclosed the transaction value but confirmed it involved a full acquisition.
The deal — announced in July 2025 and finalised on October 3, 2025 — is among Nigeria’s largest fast-moving consumer goods mergers in recent years. The Federal Competition and Consumer Protection Commission approved the transaction earlier this month.
Funke Ijaiya-Oladipo, Group Finance Director of UAC, described the acquisition as a “transformative step” in the company’s expansion strategy, emphasizing that Stanbic IBTC’s expertise and access to the wider Standard Bank Group network were pivotal to the deal’s success.
CHI Limited, one of Nigeria’s biggest food and beverage producers, is best known for its Hollandia and Chivita brands. The company was fully acquired by Coca-Cola in 2019 after the beverage giant initially purchased a 40% stake in 2016.
While UAC, founded in 1879, is one of the country’s oldest conglomerates. It restructured into a lean holding company in 2018 and currently operates across four business segments — Edibles and Animal Feeds, Paints, Quick Service Restaurants, and Packaged Foods and Beverages.
Financial strength and acquisition outlook
UAC reported a 32.6% year-on-year revenue increase to ₦110.4 billion ($72 million) in the first half of 2025, driven by growth across core units and contributions from associates.
However, pre-tax profit declined to ₦11.1 billion ($7.2 million) from ₦14.9 billion ($9.9 million) a year earlier, due to pressures in its restaurant and feed businesses. Despite inflationary headwinds, the group kept operating expenses stable at 15.4% of revenue.
The acquisition of CHI Limited signals a strategic pivot aimed at offsetting persistent losses from UAC’s restaurant operations — notably its legacy brands Mr. Bigg’s and Debonairs Pizza — while strengthening its position in packaged foods.
Once a dominant name in Nigeria’s quick-service restaurant space, Mr. Bigg’s has now posted seven consecutive half-year losses, widening its pre-tax loss by 32% to ₦780 million ($509,000) in H1 2025.
Share performance
UAC began 2025 at ₦31.45 ($0.02) per share and has gained 131% year-to-date, ranking 34th on the NGX by performance. It closed on October 13, 2025, at ₦72.70 ($0.05) per share.
Peers including Beta Glass, Chellarams, SCOA, and Skyway Aviation (SKYAVN) have surged 649%, 339%, 220%, and 169% respectively, this year, reflecting broad strength in the industrial goods sector.
With a ₦213 billion ($146 million) market capitalisation, UAC is now the 39th most valuable stock on the NGX, accounting for roughly 0.23% of total equity market capitalization.
Although shares have experienced mild corrections in recent weeks — dipping 1.36% in the past month — analysts say investor sentiment remains strong following the CHI acquisition announcement.
Note: Exchange rates used are based on official averages — ₦1,457.3/$1 as of October 13, 2025; ₦1,455.4/$1 for October 10, 2025; ₦1,554.6/$1 for H1 2025; and ₦1,465.04/$1 for H1 2024.
