Jumia Share Price Surges by 14.81% over Alleged Zinox Acquisition Move

Emma Okonji

The recent surge of Jumia shares by 14.81 per cent has continued to excite its shareholders who have expressed confidence in the e-commerce company. Although the shares of the e-commerce giant rose by 14.81 per cent, speculations were rife that the rise in its shares was not unconnected with the recent news of the planned acquision of Jumia by Zinox Group.

Findings showed that Jumia’s shares currently trading at $5.89 on the floor of the New York Stock Exchange (NYSE) after it spiked by 14.8 per cent, compared with last Friday’s price.

The share price appreciation, it was gathered, came after investors increased their buying interest in the firm after a series of trending media reports suggested that Chairman, Zinox Group, Leo Stan Ekeh may be seriously considering an acquisition of Jumia after quietly ramping up shares in the business.

Although there had been no formal confirmation or denial of Ekeh’s interest in Jumia, the development has contributed to shoring up the value of Jumia.

Consequently, the market capitalisation of the e-commerce firm rose above $588 million backed by the double-digit per cent increase in its shares.

Reacting to the surge in Jumia shares, its Head of Corporate Communications at Jumia Nigeria, Mr. Robert Awodu, denied that the rise was as a result of the rumoured news about the planned acquisition of Jumia by Zinox Group.

“Jumia is a publicly traded entity on the New York Stock Exchange, which often times experience increase and decrease in shares, depending on the market situation.

“The recent surge in Jumia shares has nothing to do with the rumoured acquision of Jumia by Zinox Group,” Awodu told THISDAY in a telephone conversation.

Awodu had last week, also denied the planned acquisition of Jumia by Zinox Group. He said such information could never be true.

Experts, however, attributed the development to investors fleeing tech stocks with high price and earnings multiples in favour of more fundamentally strong companies in the oil and gas and industrial sectors.

A Jumia takeover by the Zinox Group, although still in the realm of speculations, might see the tech conglomerate become the biggest e-commerce owner on the continent and would echo moves of a similar groundbreaking acquisition which it pulled off with Konga in 2018.

Ekeh had acquired Konga from its previous owners – South African headquartered Naspers and Swedish firm, AB Kinnevik – with the firm on the verge of a near exit from the market.