South African exec Josua Malherbe faces $2-million loss from Remgro shares

Feyisayo Ajayi -

South African tycoon Josua Malherbe has seen his investment in Remgro hit hard, as its market value dropped by $2.5 million. Remgro’s shares have plunged over 24 percent since the start of the year, reflecting investor concerns over the group’s disappointing half-year financial results.

According to data tracked by Billionaires.Africa, Malherbe’s shares in Remgro have fallen by R47.35 million ($2.49 million) over the past 82 days, mainly due to the persistent decline in the company’s share price on the Johannesburg Stock Exchange (JSE).

Remgro shares tumble after 40-percent H1 earnings drop despite revenue gain

Remgro Limited, a South African investment holding company founded by the Rupert family in the 1940s, boasts a diversified portfolio across banking, financial services, packaging, glass products, medical services, mining, petroleum, beverages, food, and personal care.

In its latest report for the first half of the 2023 fiscal year, Remgro saw a significant 40.1-percent decrease in headline earnings, dropping from R3.53 billion ($187.7 million) to R2.11 billion ($112.2 million). However, the company’s revenue showed a modest increase of 5.2 percent, reaching R25.41 billion ($1.35 billion).

Year-to-date, Remgro’s shares have fallen by 24.7 percent, dropping from R162.48 ($8.56) to R122.2 ($6.45) at the time of this report. As a result, the company’s market capitalization has dipped below $3.5 billion, leading to losses for shareholders like Malherbe.

Remgro share price decline shaves $2.5 million off Malherbe’s stake

Josua Malherbe, Remgro’s non-executive co-deputy chairman, is one of Remgro’s largest individual shareholders with a holding of 1,178,995 ordinary shares.

The recent decline in Remgro’s share price has impacted shareholder value and resulted in a R47.35 million ($2.50 million) decrease in the market value of Malherbe’s stake since Jan. 1.

His holding has fallen from R191.56 million ($10.09 million) to R144.21 million ($7.59 million). Despite this decline, Malherbe remains one of South Africa’s leading business executives.