South African billionaire Christo Wiese has seen a sharp decline in the market value of his stake in Shoprite Holdings, mirroring the leading retailer’s significant stock price drop on the Johannesburg Stock Exchange (JSE).
According to data tracked by Billionaires.Africa, Wiese’s stake in Shoprite has declined by R1.27 billion ($66.25 million) over the past 18 days. This follows a $63.7 million decrease between March 13 and 29, which saw the market value of his stake fall from $956.3 million to $892.5 million.
Shoprite’s stock dives 7.45 percent
Shoprite Holdings, South Africa’s leading grocer and Africa’s biggest retail conglomerate by store count, employs over 150,000 people across the continent. The company operates a vast network of over 3,500 stores, catering to a diverse customer base.
In a recent development, Shoprite joined forces with four other major grocery retailers to establish W23 Global, a venture fund with a $125 million commitment over five years. This initiative aims to identify and support disruptive startups and growing businesses with the potential to transform the global grocery retail landscape, focusing on innovation and sustainability.
Despite the innovation push, Shoprite’s shares on the JSE have declined by 7.45 percent, falling from R250.17 ($13.066) on April 2 to R231.53 ($12.093), bringing the company’s market capitalization below $7.2 billion. This decline has resulted in substantial losses for major shareholders like Wiese.
Wiese stake declines on share price slide
Christo Wiese, a key figure in Shoprite’s growth into its current position as Africa’s largest retailer, owns an 11.5-percent stake in the leading retailer, which translates to a total of 68,083,200 ordinary shares in the group.
Due to the recent share price decline, Wiese’s stake has fallen from R17.03 billion ($889.17 million) on April 2 to R15.76 billion ($822.92 million) at the time of drafting this report. This represents a loss of R1.27 billion ($66.25 million) over the past 18 days.
Despite this setback, Wiese remains a prominent figure among JSE investors and retains his position as one of Africa’s wealthiest businessmen. Forbes currently pegs his net worth at $1.1 billion, ranking him 2,563rd on the global wealth list.