Toyota Nigeria’s CEO spends N3 billion on Custodian Investment shares in one week

Toyota Nigeria’s CEO Olakunle Ade-Ojo spent N3 billion acquiring new shares in Lagos-listed Custodian Investment Plc in the one week to 26 May, according to a regulatory filing on Monday.

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The new purchase, totalling 150 million shares, positions him to earn more dividends when the company announces an interim dividend later in the year.

Custodian Investment, one of the few Nigerian companies that pay dividends twice a year, distributes cash rewards to shareholders for half-year and full-year periods.

Mr Ade-Ojo, a non-executive director of the investment holding company, is a son of Michael Ade-Ojo, the billionaire founder of Toyota Nigeria and Elizade Nigeria, with investments in real estate, education, automobile sales & services among others.

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The new shares, which he procured in five deals, take his combined stake in the firm to 18.3 per cent (1.1 billion shares), scaling back the gap between him and top shareholder Wole Oshin, who holds a 27.9 per cent interest in the company.

He now owns 151.2 million shares directly and 924.9 million shares indirectly on behalf of Mikeade Investments Limited, his father’s investment company.

The first deal involved the purchase of 10 million shares worth N194.5 million at N19.45 per unit. In the other transactions, 35 million shares were bought in each of the four deals at N19.60, N19.70, N20.65 and N19.80 per share, summing up to N2.8 billion.

Mr Ade-Ojo’s shareholding in Custodian Investment stood at N23.1 billion as of 10:40 WAT on Tuesday.

READ ALSO: Custodian Investment proposes N6.5 billion final dividend as annual profit surges 172%

Custodian Investment, which has tentacles in life & non-life insurance, pensions, trusteeship and property development was part of the consortium that acquired FBN Quest Merchant Bank from FBN Holdings (now First HoldCo) last year.

Its subsidiaries include Crusader Sterling Pensions, UPDC Plc, Crusader Trustees, Custodian Asset Management Limited and Custodian Hotels and Apartments Limited.

Net profit for the quarter to March grew year on year by 2.3 per cent to N10.9 billion. Total assets rose to N432.1 billion from N407.3 billion last December.