Business
NIC shares up as Cornerstone deal keeps investors watching
The counter has been on a steady climb in recent weeks, supported in part by news of a pending majority ownership change.
NIC shares up as Cornerstone deal keeps investors watching
By: Ali Twaha, Journalist @New Vision
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NIC Holdings was the biggest mover on the Uganda Securities Exchange on Monday, closing at sh8, up 9.59% from an opening price of sh7.30.
The counter has been on a steady climb in recent weeks, supported in part by news of a pending majority ownership change.
In May, Nigeria’s Industrial and General Insurance (IGI), through its local vehicle Corporate Holdings, announced it would sell its combined 64.95% controlling stake in NIC Holdings to Cornerstone Asset Managers.
The deal, once completed, will shift majority ownership of NIC Holdings, the parent company of NIC General Insurance and NIC Life Assurance, from Nigerian to Ugandan hands through a special purpose vehicle, Twenty One Ventures Limited. The transaction is still awaiting clearance from the Insurance Regulatory Authority and the Capital Markets Authority.
The takeover dominated discussion at NIC Holdings’ 25th Annual General Meeting held last week. Newly appointed board member Prof Samuel Sejjaaka said the acquisition is a significant milestone expected to strengthen the company’s competitiveness and unlock long-term value for shareholders.
According to the market update from Crested Capital, NIC’s rally during Monday’s trading session pushed its market capitalisation to sh16.99b, still among the smallest on the local bourse but a marked improvement in sentiment after a long stretch of a flat share price.
The takeover dominated discussion at NIC Holdings’ 25th Annual General Meeting held last week. Newly appointed board member Prof Samuel Sejjaaka said the acquisition is a significant milestone expected to strengthen the company’s competitiveness and unlock long-term value for shareholders.
According to the market update from Crested Capital, NIC’s rally during Monday’s trading session pushed its market capitalisation to sh16.99b, still among the smallest on the local bourse but a marked improvement in sentiment after a long stretch of a flat share price.
Other counter performance
MTN gained 1.08% to close at sh435 on volume of 100,900 shares. Stanbic Holdings edged up 0.06% to sh82.06 on heavy turnover of over 1 million shares.
Airtel Uganda was the session's biggest loser, shedding 0.44% to close at sh170.24 even as it recorded the day's highest traded volume at 138,900 shares.
British American Tobacco, dfcu, New Vision Printing and Publishing and Uganda Clays closed flat with no deals recorded.
Bank of Baroda and Umeme saw light trading but no price movement, closing at sh60 and sh63 respectively. Quality Chemicals Industries held steady at sh160.95.
MTN gained 1.08% to close at sh435 on volume of 100,900 shares. Stanbic Holdings edged up 0.06% to sh82.06 on heavy turnover of over 1 million shares.
Airtel Uganda was the session's biggest loser, shedding 0.44% to close at sh170.24 even as it recorded the day's highest traded volume at 138,900 shares.
British American Tobacco, dfcu, New Vision Printing and Publishing and Uganda Clays closed flat with no deals recorded.
Bank of Baroda and Umeme saw light trading but no price movement, closing at sh60 and sh63 respectively. Quality Chemicals Industries held steady at sh160.95.