In a landmark off-market trade involving 691,958,007 shares valued at N387.44 billion, African Capital Alliance (ACA) exited Aradel Holdings Plc yesterday.
The negotiated cross-deal was facilitated by CardinalStone Securities Limited, acting as both the buyer and the seller, in what is described as one of the largest block trades in the Nigerian Exchange’s recent history.
The shares were exchanged at a fixed price of N560 per unit, marking the final exit of ACA from Aradel Holdings. The private equity firm, which held a 15.94 per cent equity stake in the company, sold off its entire remaining interest through the highly coordinated transaction.
The deal was executed in six tranches, all off the open market, allowing for a seamless transfer of ownership without disrupting Aradel’s share price on the floor of the Nigerian Exchange (NGX).
The use of a cross-deal structure was strategic. By executing the trade-off-market and through a single brokerage, CardinalStone Securities, both parties were able to preserve market stability while completing a transaction of extraordinary size and value.
Such off-market crosses are commonly used for institutional repositioning, especially when the stake involved is large enough to influence control or governance within the company.
The Guardian learnt that while ACA’s exit had been anticipated, the sheer scale of the final divestment and its swift execution have raised significant interest in the identity and intention of the acquiring party.
Market speculation is now intensifying around who the new strategic investor or group of investors might be and what this could mean for the future direction of Aradel Holdings.
An independent investor, Amaechi Egbo, said ACA’s departure effectively ends a chapter of private equity involvement in Aradel, a company that has grown into a major player in Nigeria’s energy and industrial space.
ACA, through its CAPE IV fund, had held the stake as part of a broader investment strategy in high-growth, high-impact sectors across West Africa. With the exit, ACA may have completed its investment cycle in Aradel, potentially unlocking significant returns, he said.
He said the implications of the transaction are far-reaching, noting that a change in ownership of nearly 16 per cent of Aradel’s issued share capital could lead to a reshuffling of board seats, voting power and long-term strategic vision.
According to Egbo, the trade is being hailed as a strong signal of investor confidence in Aradel’s underlying fundamentals. He also pointed out that the deal price of N560 per share reflects a valuation that suggests optimism about the company’s earnings outlook, asset quality, and sector position.
“The transaction is also a testament to growing liquidity and the maturity of deal structuring mechanisms available for large-scale institutional trades.
“It underscores the ability of market participants to facilitate significant capital flows without destabilising listed equities, while still ensuring transparency through required post-trade disclosures,” he said.
