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Access Bank’s Chief Executive Officer, Herbert Wigwe, has sold 28.86 million shares worth N297.82 million, which represents 2.33% of his stakes in the bank. The transaction, which was done through Trust Capital Limited, was disclosed in a notice filed at the Nigerian Stock Exchange.
This means Wigwe had sold 6.81% of his stake in the financial institution, as he had sold a 4.48% stake on Friday. The bank disclosed in a notification of insider dealing, which was filed at the NSE on Friday, that its CEO sold 55.6 million shares ordinary shares, which he held indirectly.
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Details: Access Bank said Wigwe held a total of 1.24 billion indirect shares as of April 2019. The indirect shares were made up of 537.73 million shares owned by United Alliance Company of Nigeria Limited and 702.56 million shares owned by Trust and Capital Limited.
Other News
- It said the 55.6 million shares sold were from Wigwe’s indirect holding through Trust and Capital Limited
- It added that the number of shares sold was an aggregation of sales made on four different instances ― 3.61 million shares on January 10, 20.14 million shares on January 13, 9.24 million shares on January 14 and 22.63 million shares on January 15.
- Wigwe sold the shares at a price of N10.80 on January 10, N10.70 on January 13, N10.56 on January 14 and N10.22 on January 15.
- Out of the 15 members of Access Bank’s board of directors, Wigwe has the highest stake in the bank, directly owning 201.23 million shares and 1.24 billion shares indirectly.
- The additional 28.86 million shares were sold at N10.32 on January 16.
Investors raise concerns: In what is looking like a major concern to investors, the bank CEO’s is selling down his shares just after the bank announced that it had suspended its closed period. Earlier in the year, January 8th the bank announced that it had suspended its closed period which it had earlier communicated on December 30th. The closed period was supposed to last until January 29th, 2020.
Some investors who spoke to Nairametrics on the condition of anonymity are now wondering if there is a connection between the back to back sale of shares and the abrupt suspension of the announcement of the closed period.
While there is no proof, it is likely that as a leading member of the management of the bank he may have seen the results of the company giving him an undue advantage over other shareholders of the company who are not privy to results.
The share price of Access Bank Plc closed at N10 on December 31 and recorded a sustained appreciation up till January 8, where it closed a N11.80. Access Bank closed trading on Tuesday at N10.05 having opened at N10.75.
hmm, this looks like bad news for access bank shareholders. He sold another round again on january 20, access bank shareholders need to keep a keen eye out to ensure this isn’t a dump considering the extension of access bank’s closed period.
hmm, this looks like bad news for access bank shareholders. He sold another round again on january 20, access bank shareholders need to keep a keen eye out to ensure this isn’t a dump considering the extension of access bank’s closed period.
former Abia state governor you mean
SEC and NSE are looking the other ways, is this how they protect retail investors?
I don not believe that the regulators would condone any sharp practice.
Moreover, the Bank made profit, so I guess Mr Wigwe had other reasons for selling the shares
Wigwe should be queried, why should he sell of his stake, it doesn’t sound well for us as shareholders. Let no story be told to common Nigeriansoo. It ll not sound palatals, too many deceits in the industry.
The bank had better come up with the true reasons why a whole CEO of a bank ll consider such action.
Errrr…he needed money? lol. What’s the whole idea of buying shares and investing? Is it not to make money. Now you have made money and you can’t convert this ‘money’ to cash when you need it? Why invest then?
I don’t see any reason for the panic, he only sold 55.6M shares of out of the 702.56 M shares of his indirect holdings with Trust and capital ltd.
This is now remaining 482.13 M with United Alliance, 646.96 M with Trust indirect share holdings and 201.23M direct share holdings. Which is still very huge and significant for the bank.
Observation: It could be that he ( the subsidiary) wants to take some profits because the share price of Access bank have proven to have accumulated some gains in the past months/ weeks. Remember he is an investor.. Investors reap profits
It could also be that he has been advised to free up some shares for others to have access to. It is really amazing to see just one person owning this large amounts of shares in the company he is the CEO, it tells a lot.
Also it could be that he( them..trust and capital) seek to diversify their portfolio into other sectors by way of investment, don’t forget Access bank’s recent drive to cover Africa banking space with its recent full take over of and setting up of financial institutions in the Republic of Cameron. The sell off may be a strategic positioning in all or most of this regards. My take though.
Very correct. I suspect divestment of portfolio.
Why not you sees things from another angle.HE MAYBE SELLING FOR ANOTHER REASON,YOU DO NOT KNOW,FOR ONE THE REGULATING AUTHORITY the cbn have decreed, all ceo of any bank,must not exceed 10 yrs as chief executive officer,it looks his tenure is coming up,and he have about half a billion naira to invests,when he leave office,now it looks he wants to be a business operator,when he leaves his office,so it is 50% that the economy will grows at 3% or not for the next 3 yrs according to the world bank.
However the cbn can change things fast,if they moves fast.e.g this recapitalization,uses your brain much better
The timing of Wigwe’s actions are very suspicious, although he’s sold just less than 7% of his holdings so far. But the sales may be to meet some personal or corporate emergency on behalf of the institutions thru which he owns the shares. For instance, he may be raising the cash to pay off some partners who are on his neck or something. However, the timing of these transactions is not right at all.
Well emergencies never warn us right? I also feel that the NSE would have flagged it if there was any foul play. Just my opinion.
You cannot rule out that facts that Wigwe has been phenomenal in transforming Access Bank to an enviable heights
True. But we cannot rule out the bad belle factor.
Does anyone realise that Trinity Towers is being built by his Church, City of David? Has it occurred to you that he may be making cash donations free of debt? Everyone is making donation to the project, abeg leave Wigwe to his God.
Truth is, besides this, there are a myriad other possible things he could want to do with money. It’s even just a small portion of his shares he sold. It’s his now, right?