Substantial Shareholder Expands Position in Sterling Financial Holdings
Sterling Financial Holdings Company has formally notified the Nigerian Exchange (NGX) of a significant share acquisition by a major insider entity. Ess-ay Investment Limited, a company associated with Non-Executive Director Mrs. Tairat Tijani, purchased shares worth N197.9 million. The transaction, detailed in a disclosure signed by Executive Director Olayinka Oni, was executed in 18 separate tranches between January 6 and 14, 2026, at an average price of N7.34 per share for a total of 26,967,509 units.
Strengthening Shareholder Influence
This move follows a similar pattern of insider confidence, coming shortly after a late December 2025 transaction where Seven Degrees North Limited, linked to Group CEO Yemi Odubiyi, acquired shares valued at N578.1 million. Prior to the latest purchase, Ess-ay Investment Limited already held a substantial 5.14% stake, equivalent to 2,678,152,467 shares. The new acquisition increases its total holdings to 2,705,119,976 shares, elevating its stake to approximately 5.19%. This solidifies its position as the third-largest substantial shareholder in Sterling Financial Holdings, behind CardinalStone Asset Management Limited (31.98%) and Silverlake Investments Limited (20.61%). Collectively, these substantial shareholders control 57.73% of the company’s issued share capital.
The recent buying activity by key insiders appears aligned with a positive performance outlook. For the nine-month period ended September 2025, Sterling Financial Holdings reported a 141% year-on-year surge in profit before tax to N70.96 billion. This robust growth was driven by a 38.73% increase in interest income to N262.4 billion and a 57.69% rise in operating income. While assessing relevance traditional metrics, the company’s strategic direction seems to be resonating with core investors. This sentiment is reminiscent of strategic shifts seen in other sectors, such as when AEDC transitions to a holdco structure, often signaling a focus on long-term value and operational synergy.
Market Context and Performance Trajectory
The purchases by both Ess-ay Investment and Seven Degrees North were executed at prices between N7.05 and N7.34 per share. The stock has since appreciated, trading above N7.50 by mid-January 2026, representing a year-to-date gain of over 6%. Market analysts suggest that on the back of expected full-year 2025 results, the share price could potentially reach levels above N8.50, which would favor the recent acquisition prices. This internal vote of confidence occurs amidst broader economic discussions, such as when the NLC threatens nationwide actions, which can influence market sentiment. However, the company’s fundamental performance remains a primary driver for its investors, much as strategic philanthropic announcements like Bill Gates transfers of wealth capture global attention for their scale and impact, though in a different context. The focused investment from its directors underscores a belief in the company’s trajectory, independent of external events.
