Nigeria’s oldest conglomerate just made a portfolio move that caught the market off guard this quarter. UAC of Nigeria Plc has agreed to hand over its controlling 73.29% shareholding in Livestock Feeds Plc, one of the country’s biggest animal feed manufacturers, to a company that most public market shareholders have never encountered.
The buyer is Sunbeth Treenuts and Sesame Limited, an agribusiness firm with deep capabilities in Africa’s agricultural supply chains.
For shareholders tracking UAC’s aggressive transformation over the past year, this deal raises a sharp question about where the conglomerate funnels its next tranche of growth capital.
₦19.5 billion cash deal values Livestock Feeds at ₦8.85 per share
UAC disclosed the proposed transaction in a corporate filing with the Nigerian Exchange Limited (NGX) on September 30, 2026.
The all-cash agreement prices each Livestock Feeds share at ₦8.85, Nairametrics reported. Completion hinges on securing all required regulatory clearances from bodies including the Securities and Exchange Commission (SEC).
UAC first acquired its controlling interest in Livestock Feeds back in 2013, when the company was a struggling feed producer with limited national distribution.
Over the following 13 years, the conglomerate scaled the business dramatically, growing revenue fivefold and profitability eighteenfold, Nairametrics reported.
Livestock Feeds was originally incorporated by Pfizer in 1963 and has since developed into one of Nigeria’s most recognized feed brands.
More NGX corporate deals:
- MTN’s $2.2B IHS play just passed its South Africa test
- What’s driving Elumelu’s 21.07% Seplat power move?
- Airtel Money shows its cards ahead of London listing
Fola Aiyesimoju, Group Managing Director of UAC, confirmed the growth trajectory in a statement that accompanied the filing to the NGX. He also noted that the buyer is well positioned to lead Livestock Feeds through its next expansion phase.
“UAC has worked with the Company’s management to drive significant growth and expansion, with revenues increasing 5x and profitability increasing 18x.” — Fola Aiyesimoju, Group Managing Director, UAC of Nigeria Plc
The divestment is not happening in isolation for UAC, which has been reshaping its holding structure aggressively in recent months.
The group completed its consolidation of the special purpose vehicle used to acquire CHI Limited (the makers of Chivita and Hollandia) earlier in 2026, signaling a clear shift toward higher-margin consumer goods.
Livestock Feeds’ shrinking margins explain the timing of UAC’s exit
The timing of this sale becomes clearer when you examine Livestock Feeds’ latest annual results, which reveal meaningful financial stress.
Revenue for the fiscal year ending December 2025 came in at ₦37.76 billion, but gross profit dropped sharply to ₦2.33 billion from ₦6.43 billion the prior year, MarketForces Africa reported.
The deal comes as broader NGX sentiment has also softened, with oil-heavy stocks stumbling on Q4’s opening bell.
Finance costs also climbed to ₦3.24 billion from ₦2.03 billion in 2024, squeezing the feed company’s already thinning margins.
Elevated Central Bank of Nigeria (CBN) benchmark rates compounded the pressure on working-capital-intensive businesses across the exchange.
The company carried ₦19.33 billion worth of inventories and ₦13.71 billion in short-term borrowings at the close of fiscal 2024, MarketForces Africa reported.
Both figures declined sharply by December 2025, but the capital intensity of the feed business remained a drag on group returns.
UAC’s broader group, by contrast, has been posting strong numbers since the CHI Limited consolidation took effect on its financial statements.
The conglomerate recorded ₦365 billion in first-half 2026 revenue and ₦49 billion in operating profit, with gross margins expanding across its packaged food and paints divisions, UAC’s H1 2026 earnings release confirmed.
The ₦19.5 billion in proceeds from this exit could be redeployed into UAC’s higher-margin segments, where the group is already generating stronger returns on invested capital after the CHI integration, even as holiday-week trading lulls have tempered near-term exchange turnover.
Sunbeth targets an integrated African agribusiness platform with this acquisition
On the buy side, Sunbeth sees this acquisition as a transformative move beyond simply adding another subsidiary to its portfolio structure.
Jeroen de Ruijter, Chief Financial Officer of Sunbeth Agro HoldCo, described the transaction as a strategic milestone in Sunbeth’s plan to combine its sourcing capabilities with downstream manufacturing and processing operations closer to the markets it serves.
“Livestock Feeds is a business with a remarkable heritage, established brands, experienced people and an important role in Nigeria’s agricultural economy. We see significant opportunity to build on these foundations.” — Jeroen de Ruijter, CFO, Sunbeth Agro HoldCo
The deal would combine Sunbeth’s agricultural origination and supply-chain management capabilities with Livestock Feeds’ established manufacturing footprint and nationwide distribution network.
Sunbeth has committed to retaining the existing management team and workforce, with an immediate priority of strengthening operations and improving supply-chain efficiency, Nairametrics noted.
Nigeria’s NGX has seen several blockbuster corporate transactions in 2026, and this deal adds to the growing trend of portfolio reshuffling among the exchange’s legacy conglomerates as they pursue leaner, higher-return business models; a shift that intensified after the exchange pitched Nigeria as the next China to global investors at the United Nations General Assembly.
Key deal details at a glance
- Seller: UAC of Nigeria Plc (73.29% controlling stake), NGX filing
- Buyer: Sunbeth Treenuts and Sesame Limited
- Deal value: ₦19.5 billion (all-cash), at ₦8.85 per share, Nairametrics
- UAC’s legal adviser: Banwo & Ighodalo, Nairametrics
- Sunbeth’s financial advisers: FigPartners Africa and CardinalStone Partners, Nairametrics
- Sunbeth’s legal adviser: Olaniwun Ajayi LP, Nairametrics
- Status: Subject to regulatory approvals, NGX filing
