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Ethiopian billionaire Mohammed Al-Amoudi loses $855 million in 2021

Al-Amoudi, who is the wealthiest man in Ethiopia, has a net worth of $6.71 billion.

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Ethiopian billionaire Mohammed Al-Amoudi.

Ethiopian billionaire Mohammed Al-Amoudi has seen his net worth decline by $855 million since the start of the year, as the market value of his investments in industrial assets slumped significantly during the year.

Research conducted by Billionaires.Africa revealed that the $855-million reduction in his net worth translates to an average gain of $2.34 million per day for the billionaire since December.

Al-Amoudi, who controls a collection of industrial assets in Sweden, Saudi Arabia, Ethiopia and Morocco, has seen his fortune decline by more than 11 percent since the year began.

Data retrieved from the Bloomberg Billionaires Index revealed that his net worth since the start of the year has dropped from $7.56 billion on Jan. 1 to $6.71 billion on Dec. 31. This translates to a wealth loss of $855 million for the Ethiopian billionaire since the beginning of 2021.

The staggering decline in his net worth was spurred by a revaluation of his assets, which includes his stake in Svenska Petroleum Exploration, Preem, Sweden’s largest oil refiner, and a 67-percent stake in Samir, Morocco’s only oil refiner.

The $855-million loss makes him one of the few African billionaires who recorded significant wealth declines in 2021.

The multimillion-dollar loss in his wealth is linked partly to the performance of his investment in Svenska and Preem, as the disruption in the oil and gas industry in 2020 impacted the performance of oil companies.

As a result, Preem posted a 31-percent decline in revenue in 2020 from SEK84.69 billion ($9.36 billion) in the previous year to SEK58.19 billion ($6.57 billion), while its gross profit for the period fell from SEK2.83 billion ($319.6 million) to SEK575 million ($64.9 million).

As of the time of the writing of this report, Al-Amoudi, who is the wealthiest man in Ethiopia and one of the richest men in Africa, has a net worth of $6.71 billion, making him the 425th richest man in the world.

East Africa

Kenyan beer tycoon Ngugi Kiuna ups stake in gas manufacturer, BOC Kenya

The acquisition solidifies Kiuna’s position in BOC Kenya as one of the company’s leading shareholders.

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Kenyan businessman Ngugi Kiuna.

Kenyan businessman Ngugi Kiuna has increased his position in Nairobi-based gas manufacturer BOC Kenya.

According to data retrieved from the group’s financial statement for the year ending December 2021, Kiuna, the chairman of the board of BOC Kenya, acquired an additional 93,000 shares worth Ksh6.9 million ($59,000) at the time of writing.

The acquisition solidifies his position in BOC Kenya as one of the company’s leading shareholders, increasing his stake from 7.6 percent at the end of 2020 to 8.08 percent as of the time of drafting this report.

As of press time on July 2, shares in BOC Kenya were worth Ksh75 ($0.636) per share, unchanged from their opening price on the Nairobi Securities Exchange on Friday, while Kiuna’s 8.08-percent stake is presently worth more than $1 million.

The acquisition comes after he publicly opposed the proposed takeover of the Kenyan gas manufacturer by Kenyan multimillionaire businessman Baloobhai Patel and his Nairobi-based investment holding company Carbacid Investments Plc.

Despite the regulatory roadblocks erected by Kiuna to object to the buyout, which he claims “undervalues the Nairobi Securities Exchange-listed firm,” Carbacid has remained steadfast in its bid to acquire a 65.38-percent stake in BOC Kenya in a deal that is expected to be completed at a valuation of Ksh1.2 billion ($10.6 million) as it seeks to broaden its portfolio in Kenya.

With the transaction taking more than a year to complete, Carbacid stated that it will expedite hearings at the Capital Markets Tribunal and the High Court to resolve the suspension of the takeover bid and that the bid may still take place before the end of the year.

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East Africa

Kenyan banking magnate James Mwangi loses more than $6 million in June

Mwangi’s loss comes on the heels of a reduced appetite for emerging market shares.

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Kenyan banking magnate. James Mwangi.

James Mwangi, a Kenyan multimillionaire banking magnate, recorded a Ksh715.7-million ($6.07-million) loss on his Equity Group stake in June amid a market-wide sell-off on the Nairobi Securities Exchange, as shares in the Kenyan banking group finished the first half of 2022 with a significant decline.

Mwangi’s multimillion-dollar loss in his Equity Group stake comes on the heels of a reduced appetite for emerging market shares after central banks in developed markets raised interest rates in an effort to curb the surge in inflation caused by increases in energy and food prices.

Equity Group Holdings Limited, the largest financial services group in East Africa, is the second most valuable company on the Nairobi Securities Exchange (NSE), with a market capitalization of Ksh151 billion ($1.28 billion), accounting for about 7.88 percent of the NSE’s total share capitalization.

Mwangi, who was instrumental in the growth and transformation of Equity Group, Kenya’s leading financial services provider, owns a sizable 3.38-percent stake in the company, totaling 127,809,180 shares.

Equity Group shares on the local bourse have fallen from a price of Ksh45.5 ($0.386) at the start of June to Ksh39.9 ($0.339) at the time of writing this report, resulting in a 12.3-percent loss for shareholders in just 30 days.

As a result of the double-digit decline in the group’s shares since the start of June, the market value of Mwangi’s stake has decreased by Ksh715.73 million ($6.07 million), from Ksh5.81 billion ($49.36 million) on June 1 to Ksh5.1 billion ($43.28 million) on June 30.

Equity Group shares have fallen by 24.36 percent since 2022 began, as investors continue to sell their holdings in the group despite it reporting a 36percent increase in profit from Ksh8.7 billion ($74.9 million) in the first quarter of 2021 to Ksh11.9 billion ($102.4 million) in the same period of 2022.

This follows the lender’s record-high profit of Ksh40.1 billion ($350.2 billion) in 2021, which boosted its financial position and resulted in the payment of a dividend to shareholders amounting to Ksh11.3 billion ($97.25 million).

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East Africa

Kenyan businessman Paul Ndung’u takes legal action over control of SportPesa assets

The move comes nearly two years after the SportPesa brand was relaunched.

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Kenyan businessman Paul Ndung’u.

Paul Ndung’u, a Kenyan businessman and executive, has taken legal action to join the ongoing court case to determine control over assets related to SportPesa, including the trademark and Web domains.

The Kenyan businessman’s move to determine control of assets related to the gaming platform comes nearly two years after the SportPesa brand was relaunched under Milestone, a group controlled by Ronald Karauri and other investors linked to Pevans East Africa, the defunct holding company that pioneered betting in Kenya through the SportPesa brand.

Pevans East Africa ceased operations in 2019 after losing its license for alleged non-payment of taxes totaling Ksh95 billion ($806.5 million) and concerns about increased gambling addiction.

Some of Pevans’ founders, including Karauri, relaunched the sports betting brand, prompting legal action from partners, most notably Asenath Wachera Maina, the largest Kenyan stockholder in the defunct holding company, who accused Karauri of an illegal takeover through Milestone Games.

While participating in the case that will determine the fate of SportPesa’s core assets, Ndung’u revealed that, in addition to being excluded from ownership of Milestone, which now operates the SportPesa brand, his stake in the multinational Sportpesa Global Holdings Limited (SPGHL), which owns gaming subsidiaries in key markets like Tanzania and the United Kingdom, has been diluted.

In an affidavit, Ndung’u said Karauri and Robert Macharia have interests in both Milestone and Pevans, but chose to take actions that are detrimental to the latter without disclosing their conflict of interest to the court.

Since its inception in Kenya more than six years ago, SportPesa, a leading sports news and betting technology company with operations in Kenya, Tanzania, South Africa, Nigeria, Italy, Ireland, and the Isle of Man, has grown into a global gaming company with more than 500 employees and offices in six countries.

According to court documents presented by Ndung’u, the brand, which was built through heavy marketing and sports sponsorship by Pevans at a cost of more than Ksh5 billion ($42.4 million), experienced massive growth prior to the cancellation of its operating license in 2019.

Before its operating license was revoked in 2019, Pevans had distributed to partners a total of Ksh7.6 billion ($64.5 million) of its profit of Ksh12.9 billion ($109.5 million) over the previous four and a half years to June 2019.

During the 4.5-year period, Karauri and Ndung’u received dividends totaling Ksh1.835 billion ($15.8 million).

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