One of Nigeria’s youngest dealmakers, Folasope Babasola Aiyesimoju, the group managing director and largest shareholder of UAC of Nigeria Plc, is overseeing the conglomerate’s move to exit its entire 73.29% stake in the animal feed manufacturer, Livestock Feeds, to Sunbeth Treenuts and Sesame Limited for $15 million as the conglomerate continues to reshape its investment portfolio and recycle capital into core operations.

The move, aimed at monetizing long-held investments and reallocating capital to core growth sectors, comes as UAC has entered into a definitive agreement to sell its stake of nearly 2.2 billion-controlling interest in Livestock Feeds to Sunbeth, an entity affiliated with agribusiness group Sunbeth.

UAC monetizes decade-long Livestock Feeds investment

Under the terms of the transaction, Sunbeth will acquire the shares at N8.85 each, putting the value of the consideration at approximately N19.5 billion ($15 million). The $15 million transaction remains subject to customary regulatory and statutory approvals and will transfer operational control of one of Nigeria’s established animal feed producers to Sunbeth.

Fola Aiyesimoju, who owns a 25.36% stake in UAC equivalent to 743.08 million shares, has emerged as one of the conglomerate’s largest individual shareholders. His holding gives him a substantial financial interest in the direction of UAC as the group continues to consolidate acquisitions and recycle capital across its portfolio.

The Nigerian investment holding company acquired its controlling interest in Livestock Feeds in 2013 and has retained majority ownership for more than a decade. During that period, the company expanded from its existing operations into a larger national-scale feed manufacturer serving Nigeria’s poultry, aquaculture and livestock sectors. Under its ownership, Livestock Feeds recorded significant growth, with revenue increasing approximately fivefold and profitability expanding eighteenfold over the period, according to the transaction rationale.

Sunbeth takes control of UAC’s animal feed business

The sale therefore allows UAC to convert its majority equity position into cash while retaining capital flexibility to support growth initiatives across its consumer goods, food and manufacturing businesses.

Under the proposed transaction, Sunbeth Treenuts and Sesame will acquire UAC’s entire 73.29% interest, giving the agribusiness group control of Livestock Feeds following completion.

The acquisition fits into Sunbeth’s strategy of building an integrated African agribusiness platform connecting agricultural sourcing, processing, supply-chain management and distribution.

Sunbeth operates across agricultural sourcing, supply-chain management, warehousing and processing. Its acquisition of Livestock Feeds provides an opportunity to connect its raw-material origination capabilities with an established feed manufacturing platform, product portfolio and distribution network.

Livestock Feeds operates major feed mills in Ikeja, Aba and Kano, supplying products to farmers across Nigeria’s poultry, aquaculture and livestock markets. Following completion, Sunbeth intends to work with Livestock Feeds’ existing management and workforce as it seeks to improve supply-chain performance and product quality.

Another major UAC portfolio disposal

The Livestock Feeds transaction follows UAC’s agreement to sell its entire 43% stake in DP World Logistics Limited, formerly MDS Logistics, to 22 Plus Invest Limited, an entity affiliated with Tropical General Investments.

The two transactions highlight UAC’s continuing effort to reassess its portfolio and unlock value from investments accumulated over several years.

The proposed Livestock Feeds exit comes after UAC completed the final structural stage of integrating C.H.I. Limited into its operations, adding another layer to the group’s ongoing portfolio reshaping across food and beverages, paints, animal feeds, quick-service restaurants, logistics and real estate.

For UAC, the Livestock Feeds transaction would bring its more than decade-long controlling investment in the animal feed business to an end and provide approximately N19.5 billion in cash consideration, subject to regulatory approval.

For Sunbeth, the deal provides control of an established Nigerian feed manufacturer and an opportunity to combine Livestock Feeds’ manufacturing and distribution infrastructure with its broader agribusiness operations.