South African billionaire Christo Wiese has faced a steep $50 million decline in his stake in Shoprite Holdings Limited.
The retail giant, a cornerstone of Wiese’s portfolio, has seen its shares plummet on the Johannesburg Stock Exchange (JSE).
Billionaires Africa reported that Wiese’s investment in Shoprite Holdings dwindled by R947.72 million ($49.97 million) in just 14 days.
Shoprite, known as South Africa’s premier food retailer and Africa’s largest retail group, boasts over 142,000 employees and 2,989 stores across the continent.
Yet, its shares have dropped 5.10 percent, from R272.71 ($14.380) on Feb. 1 to R258.79 ($13.646), pushing its market cap below the $8.2 billion mark.
This downturn has led to considerable losses for Wiese and other investors.
Meanwhile, Wiese, instrumental in Shoprite’s ascent to become Africa’s top retailer, holds an 11.5 percent stake in the company, equating to 68,083,200 ordinary shares.
The recent dip in Shoprite’s shares has slashed his stake’s value from R18.57 billion ($979.05 million) to R17.62 billion ($929.07 million), marking a loss of R947.72 million ($49.97 million) over a fortnight.
Despite this financial hiccup, Wiese remains a prominent figure on the Johannesburg Stock Exchange and continues to be one of Africa’s wealthiest businessmen.
However, this incident raises questions about the stability and prospects of Shoprite Holdings, putting the spotlight on South African billionaire Christo Wiese’s investment strategies.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : BusinessElitesAfrica – https://businesselitesafrica.com/2024/02/16/south-african-billionaire-christo-wiese-faces-50m-blow-in-shoprite-stake/
