Egyptian billionaire Nassef Sawiris’ net worth has dropped by $230 million since the start of the year due to a decline in the market value of his stake in Adidas, Europe’s largest sportswear company and the world’s second-largest sports brand.
Sawiris, the eighth-richest billionaire in Africa and Egypt’s richest man with a fortune worth more than $6.27 billion, has seen his net worth fall by 3.5 percent in the past 31 days.
His wealth was estimated to be $6.5 billion at the start of business and trading this year, according to data compiled by the Bloomberg Billionaires Index.
The recent sell-off on the global equity market, caused by concerns about monetary authorities’ policy stance in containing soaring consumer prices and inflation, caused the market value of financial assets, including Adidas’ shares, to fall in the first month of 2022.
As a result of the sell-off, shares in the German-based sportswear company fell by more than six percent, from €259.1 ($291.3) at the start of the year to €242.25 ($272.2) at the time of writing.
The decline in the market value of Sawiris’ 3.7-percent stake in Adidas caused his net worth to fall from $6.5 billion at the start of 2022 to $6.27 billion on Jan. 31.
This equates to a $230-million or 3.5-percent decrease in his net worth since the beginning of the year.
Despite a multimillion-dollar drop in his fortune, Sawiris remains Egypt’s richest man, while his brother Naguib Sawiris, who is worth a total of $3.4 billion, is the country’s second-richest man.
Aside from his stake in Adidas, Saiwirs also has a 30-percent stake in OCI, a fertilizer producer based in Geleen, the Netherlands, which was formed as a result of a demerger from his family’s original business, Orascom Construction.
He owns 28.97 percent of Orascom Construction, or 33,825,323 common shares. Orascom Construction recently completed the acquisition of a leading Egyptian equipment importation, distribution and services company for an undisclosed sum.
According to sources close to the transaction, the strategic expansion move will unlock value for the Sawiris family, while also providing a platform for Orascom Construction to expand in the services sector and grow the group’s non-EPC business in a complementary field, as well as serving as a launch pad for the target company’s next phase of growth.