South African businessman Johan Burger, the former CEO of FirstRand, has experienced a substantial decrease in his wealth attributed to the recent downturn in the market value of his shares in FirstRand Bank, Africa’s premier financial services group.
The market value of Burger’s stake in FirstRand has declined by R27.54 million ($1.47 million) over the past twenty-six days. This downward trend is largely associated with local investors scaling back their holdings in the prominent Johannesburg-based lender.
FirstRand shares slide 6.4 percent, market cap tumbles below $20 billion
FirstRand, boasting an integrated financial services portfolio including FNB, RMB, WesBank, and Aldermore, commands a dominant position in the African financial services sector in terms of market capitalization. The conglomerate maintains active operations in South Africa, the UK, and various regional markets across Africa.
In the past 26 days, FirstRand shares have declined by 6.4 percent, sliding from R66.87 ($3.535) on Feb. 22 to R62.59 ($3.309). Consequently, this downturn has pushed the company’s market capitalization down to $18.56 billion, ranking it 325th on the Johannesburg Stock Exchange in terms of year-to-date performance.
FirstRand share decline shaves $1.47 million off stake held by non-executive director Johan Burger
Johan Burger, a former CEO and non-executive director at FirstRand, who holds a 0.11-percent stake equivalent to 6,000,000 ordinary shares in the financial services giant, has also felt the sting of the recent fall in FirstRand shares.
The decline in FirstRand shares has caused the market value of Burger’s equity stake in the financial services giant to decline from R401.2 million ($21.46 million) on Feb. 22 to R373.68 million ($19.99 million) — marking a reduction of R27.54 million ($1.47 million).
Despite the recent $1.47 million drop in the market value of his stake, Burger retains his standing as a prominent figure in South Africa’s financial sector and remains one of the high-value investors on the Johannesburg Stock Exchange.
