Hani Berzi, an Egyptian millionaire, has watched his wealth plummet as the market value of his investment in Edita Food Industries has dropped by more than $21 million in the last nine days.
Berzi’s holding in Edita Foods has lost EGP 1.03 billion ($21.46 million) in market value during the last nine days as a result of the company’s share price reduction.
Edita Food Industries dominates Egypt’s fast growing packaged snack food market. The company manufactures and distributes a variety of branded snack goods, including cakes, croissants, rusks, and wafers, via its extensive retail network.
Since April 15, Edita Foods’ share price on the Egyptian Exchange has fallen 10.46 percent, from EGP 32.40 ($0.676) to EGP 29.01 ($0.606). This fall has lowered the company’s market capitalization below $425 million, resulting in losses for investors, including Berzi.
Berzi, who formed the consumer products business in 1996 and currently serves as chairman and managing director, controls a huge 41.95 percent stake, or 303,323,015 ordinary shares, in the leading packaged food maker through Quantum Invest BV.
As a result of Edita’s double-digit percent loss in share price, the market value of Berzi’s interest has fallen by EGP 1.03 billion ($21.47 million) since April 15, from EGP 9.83 billion ($205.17 million) on April 15 to EGP 8.80 billion ($183.70 million) at the time of writing.
Despite the recent fall in the value of his investment, Berzi remains an active investor on the Egyptian Stock Exchange. The present market value of his stake cements his status as one of Egypt’s wealthiest businessmen.