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Nigeria’s third-richest man Abdul Samad Rabiu loses $751.22 million in 108 days

Nigerian billionaire industrialist Abdul Samad Rabiu has suffered a $751.22-million (N309.10 billion) loss in the past 108 days as shares in his flagship company BUA Cement Plc slipped to a record eight-month low.

BUA Cement is the second-largest producer of cement products in Nigeria after Dangote Cement Plc. The company has a total combined installed capacity of 8 million tonnes per annum. 

Rabiu, who founded BUA Group in 1988, owns virtually all of the company and derives the majority of his $4.5-billion fortune from the cement maker.

His interest in the cement manufacturer amounts to a 92.19-percent stake, or 31,218,982,581 ordinary shares in the company.

The multimillion-dollar loss from his stake came off the back of a double-digit decline in the company’s shares as investors cycle out funds in search of higher return and yield.

As of press time, 2:55 PM (UTC), Aug. 16, shares in the leading cement manufacturer were valued at N68 ($0.1653) per share, 12.1-percent lower than its opening price of N77.35 ($0.1889) per share for the year.

In reaction to the recent sell-down in the company’s shares, the share price of BUA Cement on the Nigerian Exchange has declined from N77.90 ($0.1893) on April 30 to N68 ($0.1653) as of press time, 2:55 PM (UTC), Aug. 16.

The decline translates to a loss of 12.71 percent for the central shareholder in the cement manufacturer in 108 days.

Rabiu, who owns a 92.19-percent stake in BUA Cement, has seen the market value of his stake decline from N2.432 trillion ($5.91 billion) on April 30 to N2.123 trillion ($5.16 billion).

This translates to a loss of $751.22 million (N309.10 billion) for the billionaire in 108 days.

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