Discovery shares plunge, costing South African tycoon Adrian Gore $43.2 million

South African businessman Adrian Gore has seen a notable decline in the market value of his stake in Discovery Limited. The decrease mirrors the recent downturn in the insurance giant’s share price on the Johannesburg Stock Exchange (JSE).

In just 18 days, the group’s shares have declined by over 7 percent, leading to a significant plunge of R807.23 million ($43.2 million) in the value of Gore’s stake. This adds to previous losses between Feb. 1 and March 16, when Gore’s stake in Discovery decreased by $25.6 million.

Discovery’s market cap falls below $4.5 billion

Headquartered in Sandton and co-founded in 1992 as a medical insurer by Gore and Barry Swartzberg, Discovery is one of South Africa’s leading financial services groups, specializing in long and short-term insurance, asset management, savings, investment, and employee benefits.

Gore, who co-founded the financial services giant, holds a 12.96% stake in Discovery, representing 87,267,598 ordinary shares. The Sandton-based insurer has been instrumental in Gore’s recent financial success.

Discovery’s share price on the JSE recently fell 7.22 percent, dropping from R128.03 ($6.850) on March 19 to R118.78 ($6.358). This decline caused the company’s market capitalization to fall below $4.5 billion, resulting in substantial losses for shareholders.

Gore’s stake in Discovery dips below $555 million

In light of the recent decline in Discovery’s share price on the JSE, Gore’s stake in Discovery has declined by R807.23 million ($43.19 million), falling from R11.17 billion ($597.80 million) on March 19 to R10.37 billion ($554.61 million) at the time of drafting this report.

Despite the recent decline, Gore remains a prominent figure on the JSE. Discovery, with a market capitalization exceeding $4.5 billion, is still one of the most valuable groups on the continent. The financial services group recently unveiled ambitious plans to expand its U.S. presence in the healthcare sector through its Vitality wellness program.

In an interview with Bloomberg Television, Gore outlined strategic vision to capitalize on opportunities in the U.S. healthcare market. The expansion with Vitality reflects Discovery’s commitment to innovation and growth. Led by Gore, the group aims to revolutionize the American healthcare landscape by offering solutions that promote wellness and reduce costs.