Zinox Technologies has reacted to reports that the company is planning to acquire e-commerce firm, Jumia, the market rival of its online marketplace subsidiary, Konga, amid massive losses by investors.

On Thursday, reports circulated that Nigerian businessman, Leo-Stan Ekeh, the owner of Zinox Technologies, was quietly amassing Jumia’s shares in a bid to acquire significant stake.

This move was tied to Ekeh gunning for ownership of Jumia, four years after he surprisingly acquired Konga, which was a rival to his e-commerce firm, Yudala.

At the time of the acquisition, Konga was estimated to be worth $34 million, and the second largest e-commerce business behind Jumia. It was merged with Yudala in April 2018, same year of the acquisition.

Responding to an enquiry from Ripples Nigeria, the Head of Communications for Zinox, Gideon Ayogu, said, there’s no knowledge of such deal, adding that, “I can neither deny nor confirm at the moment.”

Since the report of potential Jumia acquisition emerged, the share of the firm has traded upward by 10.8%, opening trading at $4.60 per share, but settled at $5.10 during business hour on Friday.

The speculation halted the losses experienced by investors that have seen their investment in Jumia dwindle by -60% within five months, considering the stock was trading at $11.97 per share at the beginning of 2022, and closed Wednesday around $4.78.

The crash in Jumia’s share had wiped off $607.63 million from the e-commerce firm’s market valuation, which is now down at $512.3 million, a low last seen in 2019, the year it listed on the New York Stock Exchange (NYSE).

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