These are not the best of times for investors and shareholders of BUA Foods, a subsidiary of BUA Group owned by Nigerian billionaire, Abdul Samad Rabiu, as the shares of the company dipped drastically on Monday following trading hours in the Nigerian bourse (Nigerian Exchange Limited).
The development has also affected the fortunes of the company’s chairman, Rabiu, as his wealth dwindled by -0.44%.
According to a report by Ripples Nigeria, BUA Foods’ stock slumped in value by -1.45% hours after report emerged that the company won’t be joining Dangote Sugar and Flour Mills of Nigeria (FMN) to allegedly increase cost of sugar through scarcity, as Ramadan approaches.
The company had accused Dangote Sugar and FMN of suspension of sugar sales on Monday, in an effort to profit on the rise in demand of sugar during the Muslim festive period in six weeks time.
BUA Foods stated in the statement reported by a newspaper that it won’t be joining in the artificial scarcity, and at the end of trading hours, the capital market rewarded the accused companies, and reacted negatively to Abdulsamad’s company.
Following the allegation, analysis of market trading between the three biggest sugar producers showed that Dangote Sugar’s share appreciated by +1.70%, while FMN’s shareholders investment grew by +3.56%.
BUA Foods wasn’t so lucky, as a negative outlook knocked shareholders’ investment down by -1.45%, losing N16.2 billion, after trading flat most of last week, when it also shed -4.03% in value. Investors and shareholders of the company have continued to lament over the situation.
Monday’s loss in BUA Foods led to Abdulsamad losing N12.47 billion ($30 million) from his fortune, which represents -0.44% of his wealrh – he’s now worth $6.8 billion.
During the same period, Aliko Dangote made N2.49 billion ($6 million), and his wealth is now estimated at $14.1 billion.
The food businesses recently merged into BUA Foods by the BUA Group were BUA Sugar Refinery Limited, BUA Rice Limited, BUA Oil Mills Limited, IRS Flour, and IRS Pasta