Mutual Benefits insiders buy 254m shares, shareholder sells 262m

Top executives and insiders of Mutual Benefits Assurance Plc bought more than 254 million shares worth about N748.6m in September, even as a significant shareholder sold 262.2 million shares valued at about N768.2m, according to regulatory filings.

The transactions, disclosed by the insurer on September 16, show a major change in shareholdings involving senior company officials and Charles Enterprises LLC, a significant shareholder.

Managing Director and Chief Executive Officer, Femi Asenuga, led the insider purchases with 96.001 million shares bought at N2.92 per share between 7 and 11 September.

The acquisition was followed by purchases by other senior officials and individuals connected to the company.

Chief Financial Officer, Abayomi Ogunwo, purchased 48.001 million shares at N2.98 per share between 8 and 9 September, while a financial consultant, Hakeem Oguntola, acquired 61.001 million shares at N2.95 per share on 11 and 15 September.

Similarly, Company Secretary, Babajide Ibitayo, bought 21.001 million shares at N2.85 per share on 9 September.

Personal Assistant to the Chairman, Chika Flora Udu, also acquired 28.001 million shares at N3.05 per share on 8 September.

Together, the five buyers acquired 254.004 million shares.

At their respective disclosed prices, the purchases represent an aggregate consideration of approximately N748.6.

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While insiders were accumulating shares, Charles Enterprises LLC disposed of 262.196 million shares of Mutual Benefits.

The significant shareholder sold the shares at N2.93 per share between 8 and 15 September, translating to an estimated transaction value of N768.2m.

The volume sold by Charles Enterprises was about 8.2 million shares higher than the combined purchases disclosed by the five insiders.

The transactions occurred within the same broad period, but the filings do not establish that the insider purchases were counterparties to Charles Enterprises’ sale.

The disclosures create an unusual contrast in the ownership structure of Mutual Benefits.

On one side, several people occupying senior positions within or closely connected to the company increased their exposure to the insurer by more than 254 million shares.

On the other, a significant shareholder reduced its position by more than 262 million shares.

The filings, however, do not disclose the reasons behind either the purchases or the sale. Consequently, the transactions alone do not establish whether insiders expect stronger performance from the insurer or why Charles Enterprises chose to reduce its holding.