South African businessman Barry Swartzberg finds himself grappling with significant financial setbacks as the shares of Discovery Limited, a leading financial services group in the country, witness a sharp decline on the Johannesburg Stock Exchange (JSE).
Market data monitored by Billionaires.Africa reveals that Swartzberg’s stake in Discovery has lost a whopping R164.21 million ($8.67 million) in market data over the past 10 days, reflecting the recent decline in the shares of the JSE-listed conglomerate.
The decline follows closely on the heels of a previous slump amounting to R239.22 million ($12.61 million) between Mar. 15 and Mar. 19, during which Swartzberg’s stake in Discovery plunged from R3.44 billion ($181.15 million) to R3.19 billion ($168.54 million).
Discovery shares slump by over 5 percent
Discovery, founded in 1992 as a medical insurer, has become a South African financial services powerhouse. The diversified group offers long- and short-term insurance, asset management, savings, investments, and employee benefits.
The share price of Discovery on the JSE has tumbled 5.02 percent since March 22, falling from R127 ($6.71) to R120.63 ($6.37). This decline has pushed the company’s market capitalization below $4.5 billion, inflicting losses on stakeholders like co-founder Barry Swartzberg.
Swartzberg holds a 3.92 percent stake in the Sandton-based giant, representing 25,778,420 ordinary shares. The group’s operations span South Africa and include subsidiaries in the U.K., U.S., China, Singapore, and Australia.
Swartzberg’s stake slumps as share price declines
Amid the decline in Discovery’s share price, the market value of Swartzberg’s stake has declined by R164.21 million ($8.67 million). As of March 22, his holding was valued at ZAR 3.27 billion ($172.88 million). At the time of drafting this report, it now stands at ZAR 3.11 billion ($164.21 million).
Despite these substantial losses, Swartzberg continues to hold his ground as one of South Africa’s prominent businessmen, retaining his position as one of the most affluent investors on the JSE.
