After the stock price of Medine Limited, a Mauritius-based diversified firm, reached a record high of MUR65 ($1.512) per share in February, the firm’s valuation dropped as investors and other market participants booked profits, resulting in losses for shareholders.
As a result, profit-booking and portfolio-rotation activities in Medine’s shares have resulted in a MUR53.9-million ($1.25 million) loss for the wealthy Mauritian Doger de Speville family, which controls a significant stake in Medine Limited, since Feb. 17, about 78 days ago.
Medine is a well-diversified company with active activities and interests in five economic clusters: real estate, retail, education, and the hotel and tourism industries. Its operations also include significant activities in the agro-allied industry, such as the production of sugar, molasses, bagasse, fruit, vegetables, and poultry.
The wealthy Doger de Speville family, whose members such as Marie Therese Doger de Speville, Thomas Doger de Speville, and 82-year-old Pierre Doger de Speville have been at the forefront of Medine’s operation for several years, owns a 12.8-percent stake in the group, totaling 13,473,566 shares.
The recent drop in the market value of the family’s stake from MUR875.8 million ($20.37 million) on Feb. 16 to MUR821.9 million ($19.12 million) at the time of writing this report represents a total loss of MUR53.9 million ($1.25 million) for the multimillionaire family.
The million-dollar loss in the market value of the family’s stake can be attributed to a drop in the price of Medine’s shares, which fell from MUR65 ($1.512) per share at the close of trading on Feb. 16 to MUR61 ($1.42) per share at the time of writing this report.
This equates to a 6.15-percent loss for shareholders in the past 78 days. Medine in the first half of its 2022 fiscal year posted a profit of MUR802.9 million ($18.2 million), up from a loss of MUR88.5 million ($2 million) in the previous year.
The increase in the group’s earnings during the period may be attributed to the MUR849.7-million ($19.2 million) profit generated from bulk land sales that went off without a hitch toward the end of 2021.