Aliko Dangote, Africa’s wealthiest man, lost $1.2 billion in paper net worth in February after investors offloaded shares of Dangote Cement and Dangote Sugar Plc (DSR) on the Nigerian Stock Exchange (NSE). The companies are his two largest holdings.
Dangote Cement began the year with a share price of N244.90 ($0.64), but has since lost 10.17 percent off that price valuation, ranking it 144th on the NSE in terms of year-to-date performance, African ‘Xchanges reported.
According to Nairametrics, the losses caused the billionaire’s net worth to drop to $16.6 billion after peaking at $18.4 billion earlier this year following an initial $17.8 billion recorded on Jan. 31.
Dangote derives a significant portion of his wealth from his 86-percent stake in his publicly traded cement company, making any loss in its shares significantly impact his net worth.
Several weeks ago, the billionaire was reported to have lost $845 million within 24 hours from Jan. 7 to 8 after Dangote Cement’s shares closed with a loss, following the first tranche of its massive share buy-back program. The losses left his net worth estimated at $17.8 billion. Despite the completion of the program’s first tranche, the company’s share price fell by 8.15 percent from N244.90 ($0.64) at the opening of trade on Jan. 4 to N225.00 ($0.59) at close of business on Jan. 8.
Aside from its cement and food businesses, Dangote Group has expanded into new segments, including telecommunications, real estate, steel manufacturing, fertilizer and oil gas. Africa’s wealthiest person has placed a premium on a $2.5-billion fertilizer plant expected to start operation by the end of Q1 2021. His oil and gas refinery is also expected to be completed this year and is worth $12 billion. Bloomberg reported that its valuation has yet to be reflected in Dangote’s net worth.
