Hani Berzi’s stake in Egypt’s packaged food company surges above $190 million

Feyisayo Ajayi -
Key Points
  • Hani Berzi's wealth surged by EGP823.77 million ($16.92 million) in 15 days, raising his stake in Edita Food Industries above $190 million.
  • Edita's shares increased by 9.58% in two weeks, boosting market capitalization over $440 million and enhancing shareholder value, notably for Berzi.
  • Despite short-term gains, Edita's shares are down 2.05% year-to-date, with currency depreciation increasing losses to 37.73% for long-term investors.

Egyptian business tycoon Hani Berzi has seen a substantial increase in his wealth, primarily fueled by his significant investment in Edita Food Industries, the country’s leading packaged snack food company.

Berzi, who serves as chairman and managing director, holds a 44.07 percent stake in Edita through Quantum Invest BV, translating to 308,527,188 ordinary shares.

Over the past 15 days, Berzi's stake has surged by EGP823.77 million ($16.92 million), increasing the market value of his holdings above $190 million.

This follows an earlier gain of EGP485.32 million ($10.04 million) between Sept. 25 and Oct. 7, marking a notable increase in market value from EGP8.46 billion ($174.96 million) to EGP8.94 billion ($185 million).

Edita’s market performance boosts stake value

Berzi's significant gains underscore the resilience of Edita Food Industries amidst fluctuating market conditions, solidifying his influential role within Egypt’s business landscape.

Over the past two weeks, Edita’s shares have risen by 9.58 percent on the Egyptian Exchange, climbing from EGP27.87 ($0.57) on October 13 to EGP30.54 ($0.63).

This has pushed the company’s market capitalization above $440 million, significantly enhancing shareholder value, particularly for Berzi, whose stake increased from EGP8.6 billion ($176.62 million) to EGP9.42 billion ($193.54 million).

Currency depreciation poses challenges for long-term investors

Despite these recent gains, Edita's shares have experienced year-to-date losses, down 2.05 percent in Egyptian pound terms. However, when accounting for currency depreciation, the decline widens to 37.73 percent.

Investors who entered the market at the beginning of 2024 are facing substantial losses, with a $100,000 investment now valued at only $62,270, reflecting a loss of $37,730. This underscores the importance of considering long-term trends and currency risks in investment strategies.