Egypt’s wealthiest man and one of Africa’s richest billionaires Nassef Sawiris has recorded a staggering slump in his wealth since the start of December, as shares in the German sportswear company Adidas fell by more than five percent amid news that its share buyback program is commencing in January.
Sawiris is the wealthiest man in Egypt, with a fortune amounting to over $6.39 billion, 3.1-percent lower than his $6.6-billion wealth valuation at the start of 2021.
The $250-million drop in his fortune in the past 20 days erodes his net-worth gains during the year to a loss of $203 million, placing him among those African billionaires who have recorded significant wealth losses over the past 12 months.
The Egyptian billionaire amassed the majority of the losses from his 3.72-percent stake in Adidas, the largest sportswear company in Europe and the second largest sports brand in the world behind Nike, a U.S. multinational sportswear manufacturer.
Sawiris derives the majority of his wealth from his beneficial stake in the sportswear behemoth. He is also a non-executive director in the company.
Data gathered by Billionaires.Africa revealed that his wealth at the opening of business and trading on Dec. 1, 20 days ago, was estimated at $6.64 billion.
Investor reactions to Adidas’ upcoming share buyback program, which will commence in January 2022, has led to the 4.5-percent slump in Adidas shares.
The decline in the company’s share price caused Sawiris’ net worth to fall to $6.39 billion, accruing a loss of $250 million for the billionaire in 20 days.
So far in 2021, his net worth has dropped by $203 million, driven by a 17-percent decline in Adidas shares so far.
Despite the recent decline in his wealth, Sawiris remains the richest man in Egypt and one of Africa’s wealthiest businessmen.
Adidas has revealed plans to buy-back up to €4 billion ($4.54 billion) of its shares by 2025.
In addition to its share buyback plans, which will start in January 2022 and run until 2025, the company will pay shareholders dividends from the sale of Reebok. This will take its total payouts to €9 billion ($10.15 billion) over the next five years.
