Seplat Fires Up, Investors Bet on Tony Elumelu for Capital Gain
Nigeria’s top energy company, Seplat Plc, has hit its all-time high in the stock market, gained 10% following a significant block trade transaction, according to stockbrokers.
The energy stock fired up momentum as investors’ sentiment improved ahead of fourth-quarter earnings expectations. Since January, the company’s share has gained about 27% after Maurel & Prom (M&P) sold shares in Seplat to Heirs Energies.
Past trading data revealed Seplat rarely shifts positions in the stock market, irrespective of its earnings or dividends announcements. Price moved once in a while, but that pattern appears to have shifted.
Reflecting expectations, MarketForces Africa gathered that some investors have started to tag along with Tony Elumelu’s deal that saw Heir Energies holding a significant stake in Seplat.
“Market thrives not only on hard numbers. Perception, but sentiment also plays a key role in share price movement – investors bet on people more than they often bet on numbers”.
Trading data showed that Seplat hits new 52-week high ot N7,370 per share on the Nigerian Exchange (NGX) on Thursday as about 247 thousand shares of the energy stock valued at N1.816 billion were transacted in the local bourse.
The market recorded three transactions involving 148.31 thousand shares that were executed at the price of ₦7,370.00 per share, amounting to a trade value of ₦1.09 billion.
M&P, one of Seplat Energy Plc’s founding investors, sold its entire 120.4 million shares to Tony Elumelu-backed Heirs Energies Limited for $496 million.
The deal was closed at 305 pence. The strategic acquisition of 20.07% makes Heirs Energies, led by Elumelu, the largest shareholder in Seplat.
Seplat’s share price has increased by about 27% since the share acquisition in December, according to data from the Nigerian Exchange tracked by MarketForces Africa Research.
Market value of Seplat Energy Plc.’s 599.944 million shares outstanding increased by 10% to N4.421 trillion, its highest valuation in 12 months, ahead of earnings release.
