Last week was a fairly active one for UACN. The company held an analyst and investor call last week, as well as a facts behind the acquisition event at the NGX.

You can get the firm’s presentation on the transaction here

A few months ago, the company announced plans to acquire Chi Limited. Chi Limited is behind the Hollandia Youghurt and Chivita fruit juice among other brands.

Key points of the tie up

UACN acquired Chi Limited for N182.4 billion

The tansaction  was funded via a mix of debt and equity – ₦30.8bn (17%) from UAC cash – ₦151.6bn (83%) from debt financing 

Transaction was completed with  a US$ bridge loan to guarantee proceeds to the seller in dollars. The loan was priced at SOFR + 5.5%

Refinancing into Naira obligations expected in Q4 2025/Q12026 via a mix of – Bond issuance – Term loans 

Why is this transaction a big deal ? 

UACN acquired a company almost 3 times its size. 

Last twelve months revenue (as of September 2025) for UAC and Chi  Limited were N223 billion and N493 billion respectively. 

The move potentially in a few years will catapult the firm into the trillion Naira club on the NGX. Only a handful of companies generate N1 trillion or more in revenue per annum on the exchange. 

Below is my FY 2026 forecast for the enlarged entity (UAC +Chi Limited).

Where should the stock be trading at?

In the near term, investors have reacted positively. UACN’s share price gained over 20% last week to close at N70. In the long term, this stock should easily trade at the N450 mark.