Billionaire Leo Stan Ekeh, Chairman of Zinox Group has been scooping Jumia shares, implying that a possible takeover could be in the works if the time arises.
Newsonspot blog reports that the shares price of Jumia, Africa’s e-commerce behemoth, slumped 11.32 percent to $4.78 on Wednesday as investors fled IT companies’ stocks amid a market sell-off that has devoured US markets.
It has been revealed that Jumia’s stock has dropped 60% YTD and 81 percent from its year high, bringing its market capitalization to roughly $477 million. Jumia went public in 2019 at a $14.5 share price and increased to $65 in February 2021, valuing the company at $6.2 billion at the time.
The collapse of Jumia has fueled suspicion that Konga’s owners, Zinox Group owned by billionaire Leo Stan Ekeh is moving for total acquisition of the company.
This online platform learned on Wednesday evening that billionaire Leo Stan Ekeh, Chairman of the Zinox Group has been scooping Jumia shares, implying that a possible takeover could be in the works if the time arises.
“He is recreating the same technique that he successfully utilized in acquiring Yes Mobile, and more recently, Konga,” a formidable competitor of Jumia, this is according to a source close to Mr. Ekeh.
Konga was acquired by Zinox in 2018, when the company was on the verge of bankruptcy due to severe competition from Jumia and other e-commerce competitors.
Konga quickly picked up form and after Leo Stan Ekeh’s magic touch, a substantial drop in operation costs, reorganization, and adoption of a drastic change in its business strategy. According to credible sources at Zinox, Konga was losing roughly N400 million each month previous to the acquisition.
According to a reputable source, Zinox had previously spent considerably in technology and logistics, as well as N4 billion in infrastructure.
Konga has been buying warehouses all throughout the country in order to meet client demand by combining online and physical sales.
Zinox Group’s Head of Corporate Communications, Gideon Ayogu, neither officially confirmed nor denied the speculation. He did, however, say that “nothing positive is impossible”.
