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Nigerian billionaire Abdul Samad Rabiu’s stake in BUA Cement declines by $815 million

The market value loss was the result of a sharp drop in the company’s share price.



Nigerian billionaire Abdul Samad Rabiu.

Africa’s sixth wealthiest man Abdul Samad Rabiu has seen his stake in his flagship company BUA Cement Plc decline by $815 million (N336 billion) since Jan. 4.

The $815-million market value loss was occasioned by a decline in the share price of BUA Cement as investors and shareholders sold off their stakes to position for yields in the fixed income space.

In reaction, BUA Cement shares fell by about 13 percent compared to the all-time high of $0.21 (N85.00) it recorded earlier this year on the Nigerian Stock Exchange (NGX).

BUA Cement is the fourth most capitalized company on the NGX. At a share price of $0.18 (N74.25), the leading cement manufacturer maintains a market valuation of about $6.1 billion (N2.5 trillion).

The company is set to overtake Lafarge Africa as Nigeria’s second-largest cement producer in installed capacity as three new production lines in Adamawa, Edo and Sokoto states launch  in 2022. The new facilities will have a capacity to produce 3 million metric tonnes of cement per annum each. That would expand BUA’s total installed cement production capacity to 20 million metric tonnes from 8 million metric tonnes, surpassing Lafarge Africa’s 10.5-million-metric-tonne capacity.

Rabiu founded BUA Group in 1988. It is one of Africa’s biggest manufacturing conglomerates. He is the single majority shareholder in BUA Cement.

According to Forbes, the billionaire, whose net worth is estimated at $5.5 billion, owns 98.5 percent of BUA Cement. His shareholding in the cement company accounts for about 31.27 billion units of its 33.9 billion total issued ordinary shares.

With the shares of BUA Cement declining from a record high of $0.21 (N85) per share on Jan. 4 to $0.18 (N74.25) per share recently, the market valuation of Rabiu’s stake in his cement company has declined by $815 million (N336 billion).

News of the company’s projected expansion from 8 million metric tonnes to 20 million metric tonnes by the close of 2022, triggered buying pressures in the company’s shares toward the end of 2020.

Shares rose from 13 cents (N55.00) on Dec. 22 when the company went public to $0.21 (N85.00) at the close of trade on the NGX on Jan. 4.

However, analysts questioned the company’s valuation and the rising yield in the fixed income space spiked market tensions, which made some wary investors sell off their stakes in the cement company in search of yield and impressive gains elsewhere.

The move led to a decline in the share price from the all-time high of $0.21 (N85.00) to $0.18 (N74.25) at the opening of the NGX this morning.

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Nigerian billionaire Femi Otedola gains $12.7 million from stake in FBNH

FBNH is one of Nigeria’s largest financial services conglomerates.



Femi Otedola. ©Billionaires.Africa

Nigerian billionaire Femi Otedola’s stake in the country’s oldest commercial bank, First Bank of Nigeria Holdings Plc (FBNH), has risen by more than $12 million in recent months, as shares in the financial services group rebounded strongly after falling below key levels.

According to data tracked by Billionaires.Africa, Otedola’s stake in FBNH has increased in value by N5.34 billion ($12.7 million) in the past 54 days, as investors continued to cherry-pick stakes in the commercial banking group after its price fell below N9 ($0.0214) in June.

FBNH is one of Nigeria’s largest financial services conglomerates. It is the non-operating holding company of First Bank of Nigeria Limited, the country’s oldest commercial bank, with active operations in 10 countries.

According to a flurry of trading updates published on the Nigerian Stock Exchange in June, Otedola sold 664,939,764 shares in four separate transactions, reducing his stake in the Nigerian lender from 2,717,282,140 shares, or 7.57 percent, to 2,052,342,376 shares, or 5.72 percent.

Shares in the financial group have increased by 31 percent since June 21, nearly 54 days ago, from N8.4 ($0.02) to N11 ($0.026) at the time of writing, amid renewed buying interest in the bank’s shares on the local bourse.

As a result of the double-digit increase in the shares of FBNH, the market value of Otedola’s 5.72 percent stake in FBNH has increased by N5.34 billion ($12.73 million), from N17.24 billion ($41.12 million) on June 21 to N22.58 billion ($53.85 million) at the time of writing this report.

The recent gains in his stake follow a dividend of N951.05 million ($2.29 million) from his equity stake in the financial services group that he received earlier this year.

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Nigerian billionaire Abdul Samad Rabiu unveils $23.8-million security support fund

It is the single largest donation to a philanthropic cause made by a Nigerian businessman.



Abdul Samad Rabiu. ©Billionaires.Africa

Nigerian billionaire businessman Abdul Samad Rabiu has announced the creation of the N10-billion ($23.8 million) Nigeria Security Support Fund through his philanthropic organization, the Abdul Samad Rabiu Africa Initiative (ASR Africa). He unveiled the project during a meeting with Nigerian President Muhammadu Buhari at the Aso Rock presidential residence in Abuja.

Rabiu launched the initiative to provide security equipment and medical and other supplies to the families of soldiers fighting terrorists in Nigeria’s northeast, and to strengthen local infrastructure.

The contribution marks the single largest donation to a philanthropic cause made by a Nigerian businessman, and follows the $3-million development initiative that Rabiu launched in Niger three weeks ago through ASR Africa. Last week, Rabiu received the Commander of the Order of Merit of Niger Award in recognition of his contributions to the country of Niger and its people.

Rabiu also praised Buhari for creating an enabling environment for businesses to thrive. He cited policies implemented by his administration, which, he said, aided the growth of his manufacturing conglomerate, BUA Group, which is one of the continent’s fastest-growing commercial groups.

He also promised to support the administration’s efforts in industrial development and security.

Rabiu established ASR Africa in April 2021 to promote long-term, impact-driven solutions to developmental issues affecting health, educational, and social development across Africa.

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Mike Adenuga beats out Abdul Samad Rabiu to reemerge as Nigeria’s second-richest billionaire

His net worth has dropped by more than $400 million this year as Globacom’s share price sank.



Mike Adenuga. ©Billionaires.Africa

Telecom mogul Mike Adenuga has reemerged as Nigeria’s second-richest man after three weeks in the third position. Now, he trails only Africa’s richest man Aliko Dangote, who tops the list of Nigeria’s wealthiest people, with a net worth of $19.8 billion.

The leading businessman, who is the founder of Nigeria’s second-largest telecom services provider Globacom, has surpassed billionaire industrialist Abdul Samad Rabiu, whose net worth has fallen from more than $7 billion to $5.8 billion in less than three months.

Adenuga’s reemergence as Africa’s second-richest man comes nearly two months after an exclusive report by Billionaires.Africa confirmed that Rabiu had surpassed the telecom and oil mogul to become the country’s second-wealthiest billionaire.

According to Forbes, Adenuga, who derives the majority of his fortune from his mobile phone network, Globacom, and his oil exploration company, Conoil Plc, has surpassed Rabiu as Nigeria’s richest man, with a net worth of $6.3 billion, compared to Rabiu’s $5.8 billion.

Adenuga, like Rabiu, has recorded a significant decline in his net worth in recent months. However, his the drop in his wealth has been less severe than Rabiu’s, who has lost more than $1.2 billion of his fortune over the past two months.

The revaluation of his interest in Globacom has caused his net worth to fall by more than $400 million since the start of the year, from $6.7 billion to $6.3 billion at the time of writing.

Nearly two weeks ago, Conoil reported a double-digit percent increase in earnings in the first half of 2022 despite a significant decrease in top-line performance during the period under review.

Despite a double-digit decline in revenue, profit increased by 70.5 percent to N1.81 billion ($4.35 million) in the first half of 2022 from N1.06 billion ($2.55 million) in the first half of 2021, according to the company’s half-year financial report.

The group’s cost-cutting strategies, which reduced sales-related, administrative, and distribution costs, can be attributed to its double-digit increase in earnings as management continued to create value for shareholders.

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