UAC of Nigeria Plc’s share price surged by 20.9% over two trading days after the group disclosed plans to acquire Chivita|Hollandia (CHI Limited) from The Coca-Cola Company.
Data from the Nigerian Exchange Limited (NGX) shows the diversified conglomerate’s stock rose to a record ₦88.30 at market close on Friday, up from ₦73.00 on Wednesday.
The deal, announced on July 30, 2025, marks a major strategic move for UAC and comes six years after Coca-Cola completed its full acquisition of CHI Limited to expand its presence in Africa’s value-added dairy and juice segment.
The transaction was brokered with Citi acting as Coca-Cola’s exclusive financial advisor. Legal counsel was provided by McDermott Will & Emery and Templars for Coca-Cola, while Fasken Martineau LLP and Templars advised UAC.
“As a company with a strong presence in Africa, we are deeply committed to the continent’s growth,” said Fola Aiyesimoju, the group managing director. “We are pleased to announce the acquisition of CHI Limited, a leading dairy and juice business in the region.”
According to African Stock Exchanges, UAC is currently the 36th most valuable company on the NGX, with a market capitalisation of ₦235 billion—representing 0.266% of the exchange’s total equity value.
“UAC shares have gained 155% year-to-date, having started 2025 at ₦31.45. Over the past month alone, the stock is up 96%, making it the second-best performer on the NGX,” the real-time market data platform, said on its website.
Strategic fit and market positioning
Founded in 1879 as a trading enterprise, UAC has undergone several transformations, notably transitioning to a lean holding structure in 2018. Today, it operates across four major business segments: Edibles and Animal Feeds, Paints, Quick Service Restaurants, and Packaged Foods and Beverages.
CHI Limited, the maker of popular brands such as Chivita juices and Hollandia dairy products, was fully acquired by Coca-Cola in 2019 after initially purchasing a 40% stake in 2016. While the financial terms of the sale to UAC remain undisclosed, the deal gives UAC full control of a well-established portfolio in the juice, snacks, and dairy category.
Financial strength and acquisition capacity
UAC’s recent financials signal strong fundamentals behind the acquisition move. The group posted a 32.6% year-on-year increase in revenue to ₦110.4 billion ($72.0 million) in H1, driven by solid growth across its core operating segments and contributions from associate companies.
However, pre-tax profit declined to ₦11.1 billion ($7.24 million), down from ₦14.9 billion($9.91 million) in the same period of last year, reflecting pressures in its restaurant and feed segments. Still, the group maintained operating discipline, keeping expenses flat at 15.4% of revenue, a testament to improved cost control amid an inflationary environment.
Note: The figures were originally reported in naira and converted using the official average exchange rate of ₦1,554.6/$1 for the first half of 2025. For comparison, the official average rate for the same period in 2024 was ₦1,465.04
