Key Points:
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- Kessington Adebutu’s Wema Bank stake dropped N4.15 billion ($2.82 million) due to a 14.65% share price decline.
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- The Nigerian bank’s share price fell over 14% on the NGX, pushing its market cap below $60 million.
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- Despite a local currency rise, Wema Bank investment has lost 27.65% YTD due to a weakening Naira.
Renowned Nigerian gambling magnate Kessington Adebutu has experienced a significant decline in his fortune due to a recent drop in the market value of his shares in Wema Bank, one of Nigeria’s leading financial services groups.
According to data tracked by Billionaires.Africa, Adebutu, one of Nigeria’s richest men, has suffered a N4.15-billion ($2.82 million) loss on his Wema Bank shares over the past 16 days.
This comes after a surge in the market value of his stake in Wema Bank between May 1 and 7, when it increased by N6.01 billion ($4.35 million), rising from N21.38 billion ($15.47 million) to N27.39 billion ($19.82 million).
Wema Bank share price slumps
Wema Bank, a prominent financial services provider, has seen a 14.65-percent drop in its share price on the Nigerian Exchange (NGX), falling from N7.85 ($0.00534) on May 8 to N6.70 ($0.00456). This drop pushed Wema Bank’s market capitalization below $60 million, resulting in substantial losses for its shareholders.
Kessington Adebutu, founder of Nigeria’s oldest gaming company, Premier Lotto, holds a significant 28.09-percent stake in Wema Bank through Neemtree Limited, a special purpose vehicle established in 2013 for targeted investments.Â
The recent share price decline has caused the market value of Adebutu’s shares in Wema Bank to decline by N4.15 billion ($2.82 million), from N28.41 billion ($19.58 million) on May 8, to N24.25 billion ($16.71 million) at the time of drafting this report.
Your Life and Your Money: Impact of currency devaluation
Despite the setback, Adebutu remains one of the wealthiest investors on the NGX. Wema Bank’s share price has declined by over 20 percent year-to-date in local currency terms.
However, the recent devaluation of the Nigerian naira against the U.S. dollar has also contributed to the loss , leading to a total decrease of 27.65 percent on a year-to-date basis. A $100,000 investment in Wema Bank at the start of the year would now be worth $72,348, representing a loss of $27,652.
