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Obafoluke Otudeko gains $11.84 million as Honeywell shares surge by 81 percent to three-year high

Otudeko owns a majority stake in Honeywell Flour Mills Plc.

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Nigerian business magnate Obafoluke Otudeko.

Nigerian business magnate Obafoluke Otudeko has gained N4.87 billion ($11.84 million) from his stake in Honeywell Flour Mills Plc, as shares in the integrated flour miller crossed the two-naira ($0.00486) mark for the first time in three years.

Otudeko owns a majority stake in Honeywell Flour Mills. His stake amounts to 5,294,363,565 ordinary shares, which he holds indirectly through Siloam Global Services Limited.

The million-dollar gain from his stake came off the back of a surge in the share price of the company in the past 72 days, as investors and bargain hunters acquired additional shares in the company in reaction to its financial performance.

Honeywell reported in the first quarter of its 2021-2022 financial year that its profit grew by 233 percent to N150 million ($364,521), from N45 million ($109,356) in the corresponding quarter of its 2020-2021 financial year.

This growth in profit was delivered by cost optimization strategies and a 25-percent increase in revenue from N26.4 billion ($64.16 million) to N33.06 billion ($80.34 million).

As of the closing of the Nigerian Exchange yesterday, Aug. 13, shares in the company were worth N2.05 ($0.0498), 9.63-percent higher than its opening price for the day.

Data retrieved from the Nigerian bourse revealed that shares in Honeywell Flour Mills have increased from N1.13 ($0.00275) on June 1 to N2.05 ($0.0498) on Aug. 13.

This translates to a gain of 81 percent for shareholders in 72 days.

The market value of his stake has increased from N5.982 billion ($14.54 million) to N10.85 billion ($26.38 million) between June 1 and Aug. 13.

Research conducted by Billionaires.Africa revealed that Otudeko’s stake in Honeywell has gained N4.87 billion ($11.84 million) in 72 days.

East Africa

Kenyan multimillionaire banker James Mwangi loses nearly $5 million in 56 days as Equity Group shares retreat from 21-month high

Equity Group Holdings Limited is a leading financial services holding based in Nairobi.

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Kenyan multimillionaire banker James Mwangi.

Kenyan multimillionaire businessman James Mwangi has seen the market value of his stake in Equity Group Holdings decline by Ksh550 million ($4.96 million) in the past 56 days, as shares in the Kenya-based group retreated from a record 21-month high.

Equity Group Holdings Limited is a leading financial services holding headquartered in Nairobi, the capital and largest city of Kenya.

Under the leadership of Mwangi, the holding has grown into one of the largest financial services groups in East Africa, operating through its subsidiaries in Uganda, Tanzania, South Sudan, Rwanda and the Democratic Republic of Congo, in addition to its Kenyan operations.

As of press time, Oct. 22, shares in the Kenya-based financial services group were trading at KSh49.95 ($0.451) per share, 91-basis points higher than its opening price this morning.

In recent times, Equity Group has lost nearly eight percent of its market capitalization on the Nairobi bourse, as investors book profits after the share price surged to a record 21-month high of Ksh54.25 ($0.489) on Aug. 27.

Since Aug. 27, the group’s share price has declined from a price of Ksh54.25 ($0.489) to KSh49.95 ($0.451) as of the time of writing, accruing a loss of 7.5-percent for shareholders and insiders, such as Mwangi, who hold stakes in the financial services group.

As a result of the decline in the group’s share price, the market value of Mwangi’s stake has declined from Ksh6.93 billion ($62.55 million) to Ksh6.38 billion ($57.6 billion) between Aug. 27 and Oct. 22.

This translates to a loss of Ksh550 million ($4.96 million) for the multimillionaire banker in 56 days.

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East Africa

Kenyan mogul Julius Mwale offers $20 million to farmers to restore activity at Mumias Sugar

The funds will be used to kickstart sugarcane cultivation and sugar production.

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Kenyan mogul Julius Mwale.

Kenyan tech tycoon and Mwale Medical and Technology City (MMTC) owner Julius Mwale has offered Ksh2.2 billion ($20 million) to farmers in an effort to restore sugarcane farming.

According to recent reports, Mwale said the funds will be used to provide farmers with capital to kickstart sugarcane cultivation and sugar production, and to boost the industry at large.

The capital commitment follows his successful Ksh27.6-billion ($249.31 million) bid made through his Tumaz & Tumaz Enterprise as part of a leasing tender to take control of Mumias Sugar over a 15-year period.

Mwale, who received a $200-million (Sh22.1 billion) loan commitment from a leading U.S. bank to strengthen his chances of taking home the lease, placed the highest bid from among eight bidders looking to assume control of the company, according to the receiver-manager, Ponangipali Rao.

His $249.31-million bid was higher than the Ksh8.4 billion ($75.9 million) that Devki Group owner Narendra Raval offered to take control of Mumias and the KSh3.5 billion ($31.61 million) that Kenyan businessman Jaswant Rai offered through his company, Rai Group.

Mwale’s $20-million commitment is expected to go to farmers who abandoned the Mumias plantation after the sugar-production company ran into a financial crisis three years ago.

In addition, Mwale disclosed that a sum of KSh2.2 billion ($20 million), Ksh887 million ($8 million) and Ksh221 million ($2 million) will be allocated, respectively, to revive two ethanol plants owned by the company, its power generation unit and its water-bottling plant.

Mwale also plans to allocate Sh2.2 billion ($20 million) each to build an airport, an agricultural research university, a sugar tourist resort, a housing project and a hospital at the Mumias complex.

Mwale is the president and CEO of SBA Technologies, a New York-based company founded in 2003.

He is also the lead investor in MMTC, a $2-billion community-owned sustainable metropolis with an extensive medical and technology complex that contains a shopping and residential unit, a golf resort and a convention center.

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East Africa

Ethiopian billionaire Mohammed Al-Amoudi gains $360 million in 21 days after losing $530 million between July and September

His $7.2-billion fortune is derived from closely held companies such as Preem, Svenska Petroleum and Midroc Europe.

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Ethiopian billionaire Mohammed Al-Amoudi.

Ethiopia-born billionaire Mohammed Al-Amoudi has recorded a $360-million boost in his net worth in the past 21 days after his wealth fell by $530 million between July and September.

The billionaire, whose real-time fortune of $7.2 billion is derived from closely held companies such as Svenska Petroleum, Midroc Europe (a construction and property group) and Preem (his most valuable asset), has seen his net worth increase by 5.26 percent since Sept. 29.

Data retrieved from the Bloomberg Billionaires Index revealed that his net worth has increased from $6.84 billion on Sept. 29 to $7.20 as of the time of writing, Oct. 21, owing to an increase in the valuation of his assets across Sweden, Saudi Arabia and Ethiopia.

This translates to a net worth gain of $360 million for the billionaire in the past 21 days.

Between July 28 and Sept. 29, his net worth fell from a valuation of $7.37 billion to $6.84 billion.

The recent increase in his net worth is linked to a revaluation of his equity interest in companies, and specifically his ownership interest in Svenska and Preem, the largest fuel company in Sweden, with an annual refining capacity of more than 18 million cubic meters of crude oil.

Recently, Pyrocell, a Preem subsidiary, announced that a biofuel plant producing pyrolysis is under way. This is in line with the group’s commitment to achieving large-scale renewables production.

The plant, which is located in Gavle, Sweden, will produce around 25,000 tonnes of non-fossil pyrolysis per year, which equates to the annual fuel consumption of 15,000 passenger vehicles.

Al-Amoudi’s net worth of $7.20 billion makes him the 387th richest man in the world behind U.S. businessman and investor Tom Gores, who is $20-million richer.

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