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Nassef Sawiris’ stake in OCI N.V. is now valued at more than $3 billion

Meanwhile, his stake in German sportswear behemoth Adidas is valued at $2.59 billion.

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Nassef Sawiris.

Egypt’s richest man Nassef Sawiris’ stake in OCI N.V., a leading global producer and distributor of nitrogen and methanol products, has recently risen above the $3-billion valuation mark, making it his most valuable asset.

As of press time, April 19, the market value of the Egyptian billionaire’s 38.8-percent stake in OCI N.V. is valued at $3.1 billion, while his stake in German sportswear behemoth Adidas is valued at $2.59 billion.

Since revealing in 2015 that he had obtained a six-percent stake in Adidas AG, one of the world’s largest sportswear manufacturers, the Egyptian billionaire’s stake in the behemoth has been his most valuable asset, until recently, when his investment in OCI N.V. returned impressive gains and offset losses from his stake in Adidas AG.

The recent increase in his stake in OCI N.V. above the market value of his stake in Adidas can be attributed to a 65-percent increase in the share price of the Dutch fertilizer company since the start of the year, whereas Adidas’ share price has declined by more than 23 percent so far.

The recent move comes as no surprise, as shares of fertilizer companies have been in high demand as a result of the commodity boom, especially since the start of the Russia-Ukraine conflict.

According to reports, the prices of major nutrients have been rising for several months due to supply shortages and high energy prices, resulting in a surge in the stock price of fertilizer companies, all of which have increased the output of their urea manufacturing units beyond installed capacity in order to meet the shortfall caused by sanctions imposed on Russia.

Sawiris’ ability to amass a $3.1-billion fortune from his 38.8-percent stake in the Netherlands-based fertilizer producer, OCI N.V., is a success story that exemplifies resilience, hard work and patience.

After graduating from the University of Chicago with a degree in economics in 1982, the leading businessman rejoined his father and two older brothers at OCI N.V., which by that time had diversified into communications and real estate.

Several years later, Sawiris led the acquisition of the Egyptian Fertilizer Company, which marked the family business’ expansion into the fertilizer market. This was followed by a demerger from his family’s original business, Orascom Construction.

A consortium of investors led by Microsoft co-founder Bill Gates invested $1 billion in OCI N.V. in January 2013 to assist the Sawiris family in transferring the company’s listing from the Cairo Stock Exchange to NYSE Euronext Amsterdam.

Fertiglobe, a 58-42 percent partnership between OCI N.V. and the Abu Dhabi National Oil Company (ADNOC), successfully listed its shares on the Abu Dhabi Securities Exchange (ADX) six months ago, becoming the first free zone company traded on an onshore bourse in the UAE and the ADX’s third-largest-ever listing.

At the time of the listing, Fertiglobe’s market capitalization was assessed at $5.8 billion.

Fertiglobe is the world’s largest urea and ammonia seaborne exporter, as well as the Middle East and North Africa’s largest nitrogen fertilizer producer, with a production capacity of 6.7 million tonnes of urea and merchant ammonia through four subsidiaries in the UAE, Egypt and Algeria.

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Africa’s richest man Aliko Dangote gains $100 million in June

The $100-million increase in his net worth in June follows a $300-million decline in May.

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Aliko Dangote.

Africa’s richest man Aliko Dangote saw his net worth rise by $100 million in June despite the mixed performance of his publicly traded companies, as investors reduced their positions in shares that had delivered impressive year-to-date growth due to profit and valuation concerns.

According to data from the Bloomberg Billionaires Index, Dangote’s net worth increased by $100 million between the start of business on June 1 and the end of business on June 30, rising from $20.3 billion to $20.4 billion.

The $100-million increase in his net worth in June follows a $300-million decline in May, when investors sold down shares in his flagship company Dangote Cement as part of a move to preserve wealth after the cement maker’s stock price surged to an all-time high of N300 ($0.72) per share on May 19.

The increase in his net worth brings his year-to-date wealth gains to $1.32 billion, making him one of the few billionaires in the world who have been able to record impressive gains in their fortunes despite recent stock market declines.

Apart from the multimillion-dollar increase in his net worth in June, the Nigerian billionaire, who recently launched the continent’s largest granulated urea fertilizer complex, received a total dividend of $725.2 million this year from his publicly traded businesses, which is significantly more than the $639.5 million he received last year.

Through his manufacturing conglomerate Dangote Industries Limited, Dangote opened an application nearly four days ago to raise up to N300 billion ($723 million) in medium-term debt funding from Nigerian investors to fund the completion of his $19-billion integrated refinery and petrochemical complex, Dangote Oil Refinery.

The refinery’s pipeline infrastructure, when completed in the first half of 2023, will process 540,000 barrels of Nigerian crude per day in the first phase of operation, increasing to 650,000 barrels per day later.

The refinery will also produce 65 million liters of premium motor spirits (petrol), 15 million liters of diesel, and 3 billion standard cubic feet of gas per day.

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Egypt’s richest man Nassef Sawiris loses $600 million in June after gaining $1.25 billion in May

His fortune is derived from a 38.8-percent stake in Netherlands-based OCI N.V. and a six-percent stake in German sportswear behemoth Adidas.

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Egypt's richest man Nassef Sawiris.

After reporting a whopping $1.25-billion increase in his net worth in May, Egypt’s richest man Nassef Sawiris saw his fortune plummet by $600 million in June as the market value of his investment portfolio fell by double digits, mirroring the drop in EU stocks over the month.

Sawiris, a leading Egyptian businessman and one of Africa’s richest billionaires, serves on the boards of Adidas, a leading sportswear manufacturer, and OCI N.V., a global manufacturer and distributor of nitrogen products.

The majority of his fortune is derived from a 38.8-percent stake in Netherlands-based OCI N.V. and a six-percent stake in German sportswear behemoth Adidas, which is valued at $2.11 billion at the time of writing this report.

According to data from the Bloomberg Billionaires Index, Sawiris had a net worth of $7.45 billion at the start of business on June 1, but his net worth dropped to $6.85 billion at the end of business on June 30 due to a decline in the share prices of OCI N.V. and Adidas.

The $600-million decline in his net worth in June follows a drop in EU equities as global markets face immense pressure, with aggressive monetary tightening by the U.S. Federal Reserve and other major central banks fueling fears of an impending economic downturn.

Despite the recent loss, the year-to-date change in Sawiris’ net worth remains positive, with the businessman’s fortune rising by more than $350 million this year, from $6.5 billion at the start of business in January to $6.85 billion at the time of writing.

The increase in his net worth year-to-date can be linked to his stake in OCI N.V., which enjoyed an increase in its valuation after the group reported a 246-percent increase in net income in the first quarter of 2022, from $102 million in the first quarter of 2021 to $354 million, driven by a 108-percent rise in revenue above $2.3 billion due to higher volumes and selling prices.

The group revealed that its outlook remains positive until at least 2024, providing strong support for nitrogen prices to remain above historical averages.

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Ghanaian tycoon Daniel McKorley’s McDan Group to donate land to students for soya bean cultivation

McKorley is a well-known businessman and the founder and CEO of the McDan Group.

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Ghanaian tycoon Daniel McKorley.

Ghanaian tycoon Daniel McKorley has announced plans to donate three to five acres of land to students for soya bean cultivation as part of the efforts to increase food sufficiency in Ghana, as food prices continue to rise due to supply constraints exacerbated by the war in Ukraine.

According to GhanaWeb, the leading business mogul announced the decision at the third edition of the McDanYouthConnect series of events, explaining that the move is part of a concerted effort to improve agriculture and promote food sufficiency in the country. He added that students will be given the opportunity to cultivate one or two products and create value for the nation.

His decision, which was applauded by all dignitaries and persons who attended the event, resulted in the release of 100 acres of land for the block farming project.

McKorley went on to advise students to continue engaging with the “right” people to increase their knowledge base, to network, and to ask for help when trying out something new, as such an attitude in life will allow them to unlock their future potential and grow.

McKorley is a well-known businessman and the founder and CEO of the McDan Group of Companies, an Accra-based transportation and logistics group with three divisions: McDan Shipping, McDan Aviation, and McDan Logistics.

Aside from its core operations in Ghana, the group maintains active operations and an extensive presence in West African countries such as Sierra Leone, Liberia, and Equatorial Guinea through its broad interests in shipping, logistics, and aviation.

McDan Group, led by McKorley, opened its first private jet terminal at an international airport in Accra, Ghana’s capital city, earlier this year, with three planes and one helicopter operating under the McDan Aviation brand.

The jet terminal will serve high-end clients seeking to maximize luxury clients and corporate executives seeking a quick and efficient commute for business purposes.

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