VFD Group Plc, a diversified investment company listed on the Nigerian Exchange Limited (NGX), has seen a flurry of related party transactions in recent weeks, with significant share sales and purchases signaling potential strategic repositioning among its stakeholders.
Regulatory filings at the NGX reveal a pattern of divestitures by related parties, alongside selective acquisitions, as the company continues to strengthen its financial performance.
Significant Share Sales by Related Parties
On June 11, Processus Capital Limited, a related party to one of VFD Group’s subsidiaries, offloaded 2 million shares at N16.14 per share, in a transaction valued at N32.3 million.
On the same day, Expoze International, linked to an undisclosed former director, sold 780,526 shares at N16.11 per share, amounting to N12.6 million. These transactions follow a series of divestitures earlier in May, underscoring a trend of stake reduction among related parties.
Regulatory filings from late May paint a similar picture. On May 28, Processus Capital divested 868,710 shares at N16 per share, totaling N13.9 million. The following day, May 29, the same entity sold 316,235 shares at N16 each, valued at N5.1 million. On May 30, Processus Capital continued its sell-off, parting with 1.1 million shares at N17 per share, a deal worth N18.4 million.
Anchoria Investment & Securities Limited, a VFD Group subsidiary, also contributed to the divestment trend, selling 1,980 shares on May 28 at N15 per share (N29,700) and 1 million shares on May 30 at N19 per share, totaling N19 million.
Selective Share Purchases
Amid the wave of sell-offs, Anchoria Investment & Securities Limited also engaged in a notable acquisition. On May 29, the subsidiary purchased 1 million shares at N16.81 per unit, a transaction valued at N16.8 million.
This move suggests a strategic recalibration, possibly aimed at maintaining influence or capitalizing on the perceived undervaluation of VFD Group’s stock.
Financial Performance and Market Context
VFD Group, which went public on October 6, 2023, and is listed on the NGX’s main board, operates across microfinance, fund management, issuing house services, stock brokerage, and real estate.
The company has shown robust financial growth, with net profit for the first quarter of 2025 rising to N3.5 billion, up from N2.6 billion in the same period last year. Total assets also grew by 8.4% to N320.6 billion compared to December 2024, reflecting strong operational momentum.
The recent share transactions occur against a backdrop of heightened investor scrutiny, as related party dealings often raise questions about governance and strategic intent.
Analysts suggest that the divestitures could reflect profit-taking following VFD Group’s strong performance or a reallocation of capital by related entities. Conversely, the share purchase by Anchoria Investment & Securities may indicate confidence in the company’s long-term prospects.
The pattern of transactions highlights a dynamic reshaping of ownership within VFD Group’s ecosystem. While the sell-offs by Processus Capital and Expoze International reduce their exposure, Anchoria’s acquisition suggests selective optimism.
Investors and market watchers will likely monitor future filings for signs of whether these moves are part of a broader strategy or isolated financial maneuvers.
WHAT YOU SHOULD KNOW
VFD Group Plc, a diversified investment firm listed on the NGX, has experienced a surge in related party share transactions, with significant divestitures totaling over N101 million in May and June 2025, led by Processus Capital and Expoze International, alongside a strategic N16.8 million share purchase by subsidiary Anchoria Investment & Securities.
