Home » Botswana real estate tycoon Gulaam Abdoola’s stake in Turnstar declines by $3.67 million

Botswana real estate tycoon Gulaam Abdoola’s stake in Turnstar declines by $3.67 million

by Editorial Team

The shares of Botswana real estate tycoon Gulaam Abdoola in Turnstar Holdings have lost $3.7 million (BWP168 million) in value since the start of the year.

The drop can be linked to the sustained decline of the company’s share price on the Botswana Stock Exchange, as investors sold off shares in the diversified property loan stock company in reaction to its financial performance in 2020, coupled with headwinds in its operating environments.

In its 2020 financial statement, Turnstar reported a 4.57-percent decline in revenues on the back of disruptions due to the COVID-19 pandemic and the weakening of the Botswana pula against the U.S. dollar.

These combined circumstances pressured Turnstar’s earnings downward, as its profit before tax declined by 13 percent to $8.78 million (BWP94 million) in 2020.

In reaction, the company’s share price dropped from $0.231 (BWP2.50) on Dec. 31, 2020 to $0.185 (BWP2.00) as of close of market on June 18.

The decline, which translates to a 20-percent drop, triggered a $26.46-million (BWP1.14 billion) loss for the company on the local bourse.

Abdoola, the founder of Turnstar, is the company’s largest individual shareholder, with a 14-percent equity stake.

His 80 million ordinary shares are valued at $14.80 million (BWP160 million).

As a result of the decline in the company’s share price, the businessman, who earned $672,000 in dividends and debenture interest from his stake in Turnstar this year, saw the value of his stake drop by 20 percent.

The market value of Abdoola’s stake has dropped from $18.50 million (BWP200 million) on Dec. 31, 2020 to $14.80 million (BWP160 million) as of close of market on June 18.

This translates to a loss of $3.7 million (BWP168 million) for Abdoola.

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