Shares of UAC of Nigeria Plc (UACN) jumped 22.69% in the trading week that ended 5th December 2025, pushing its quarter-to-date gain past 44% and trading above N96.
This rally followed a strong November, when the stock rose 18.65% after a three-month decline that began in August, keeping it on track toward N100.
In early November, UACN disclosed that it had deposited N19.2 billion in escrow as part of its acquisition of CHI Limited from Coca-Cola, makers of popular beverage brands Chivita and Hollandia.
Later that month, on 20th November, the company held its first major investor and analyst briefing since announcing the deal, during which it described the acquisition as a strategic move with potential long-term benefits.
The market response to these developments has been notable. Year-to-date, UACN has delivered a strong performance on the NGX, surging over 207%, well ahead of the 144.75% gain recorded for the entire 2024 fiscal year.
The acquisition
The acquisition was carried out through UACN’s wholly owned Special Purpose Vehicle, UAC Food and Beverage Company Limited, funded with N30.8 billion from its reserves and N151.6 billion via a 12-month USD bridge loan.
- Finance Director Funke Ijaiya-Oladipo stated that UACN had already secured a long-term refinancing plan: a fully underwritten 7-year Naira loan and a N150 billion SEC-approved bond programme to access the capital market as interest rates decline.
According to Group Managing Director Fola Aiyesimoju, the timing of the deal was influenced by current market conditions, including lower valuations and reduced competition.
The acquisition immediately expands UACN into three high-growth markets where it previously had no presence:
- Drinking yoghurt
- Evaporated milk
- Fruit juices and nectars
CHI’s brands—Chivita, Hollandia, Capri-Sun, and SuperBite—now join UACN’s existing portfolio of legacy brands.
Although acquisition-related costs affected the company’s third-quarter 2025 financials, shareholder sentiment appeared largely unchanged, with shares likely responding to updates on the progress of the deal.
New highs
Shares of the company are on the verge of crossing the N100 mark, priced around N96.80 in pre-market on Monday, 8th December 2025.
This year, the stock has broken through the N70 resistance level, reaching highs above N80 and, more recently N90.
- The year began with shares at N32.95, closing January slightly higher at N36. Moderate bullish momentum continued from the first quarter into the second, with a 24% surge in June, moving price above N40.
- In July, shares spiked 96.33% to N80.30 following the announcement of the underlying agreement for the acquisition of CHI in the final week of the month.
- However, over the next three months, the price declined to N66.50, but a renewed surge in November, up 18.65%, lifted the stock back to N78.90.
So far in early December, shares have risen to N96.80, following an 18.65% gain in November.
