Egyptian Tycoon Hani Berzi Loses $15.8 Million on Edita Stake

The value of Egyptian billionaire Hani Berzi’s investment in Edita Food Industries fell by roughly $15.8 million in less than two weeks, reducing his net worth. The loss is due to the recent drop in the company’s stock price on the Egyptian Exchange.

The market value of Berzi’s holding in Edita Foods has dropped by EGP752.24 million ($15.76 million) in the last thirteen days as the company’s share price has fallen.

Berzi’s investment increased by $17.18 million between May 14 and 27, but has since seen a setback. During that period, his interest in the company increased from EGP 8.28 billion ($175.63 million) to EGP 9.09 billion ($192.81 million).

Edita Food Industries dominates Egypt’s packaged snack sector, making and selling branded foods like cakes, croissants, rusks, and wafers through a large retail network.

Hani Berzi, who formed the consumer products business in 1996 and serves as chairman and managing director, controls a huge 41.95 percent stake, or 303,323,015 ordinary shares, in the leading packaged food manufacturer through Quantum Invest BV.

Despite its market leadership, its Egyptian Exchange shares have decreased by 7.38 percent, from EGP30.23 ($0.64) on May 28 to EGP27.75 ($0.58) as of the time of writing. This fall has resulted in enormous losses of millions of dollars for its stockholders, including the wealthy Berzi.

Berzi’s stock has lost EGP752.2 million ($15.76 million) in market value during the last 13 days as a result of Edita Food’s recent share decrease, from EGP9.17 billion ($192.12 million) on May 28 to EGP8.42 billion ($176.36 million).

Despite a recent decrease in the market value of his investment, Berzi remains a significant investor on the Egyptian Exchange. The present market value of his stake has cemented his status as one of Egypt’s wealthiest businesspeople.

Investors should proceed with care in light of Edita Food’s massive year-to-date loss. The company’s share price has decreased by almost 12% year-to-date, with a total decline of 43.4 percent including the Egyptian pound depreciation.

The continuous decrease in the company’s share price, combined with the impact of currency movements, underscores the inherent hazards of regional market volatility. A $100,000 investment in the company since January 1 would now be worth $56,600, a significant loss of $43,400.

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