UAC of Nigeria Plc, a food-products maker and fast-food restaurant operator, rose the most since November on speculation it will pay a full-year dividend.
The stock rose 5 percent, the daily limit and the most since Nov. 1, to 30.45 naira at the close in in Lagos, the commercial capital, reducing its decline this year to 2.3 percent.
Nine-month results were “very impressive, so investors are taking positions in the hope that it will pay a dividend,” David Adonri, chief executive officer of Lambeth Trust and Investment Co., a Lagos-based brokerage, said by phone today.
Net income for the nine months through September more than doubled, climbing to 9.63 billion naira ($61 million), from 3.83 billion naira a year earlier, UAC said on Oct. 31. Second- quarter profit increased more than threefold to 7.8 billion naira, from 2.2 billion naira a year earlier, it said on Aug. 2.
The second-quarter profit included 5.5 billion naira earned from the sale of a 49 percent stake in UAC’s food division to Tiger Brands Ltd. (TBS) of South Africa, Securities Africa Ltd., a Johannesburg-based brokerage, said at the time.
“Perhaps the company plans to distribute that to shareholders,” Adonri said.
To contact the reporter on this story: Vincent Nwanma in Lagos at email@example.com
To contact the editor responsible for this story: Dulue Mbachu at firstname.lastname@example.org