Nigeria News

Abdulsamad Rabiu of BUA, becomes Nigeria’s second richest billionaire

BUA Foods Plc, one of the closely held businesses of Nigerian billionaire industrialist Abdul Samad Rabiu, completed the listing of its shares on the Nigerian Exchange on Wed., Jan. 5, after it received the requisite approvals from the regulatory authorities.

 

Consequently, the net worth of Rabiu, the majority owner of one of Africa’s fastest-growing cement makers, BUA Cement, rose by nearly $1.9 billion to $7.2 billion thanks to the valuation of BUA Foods.
His current net worth eclipsed the $6.6-billion wealth valuation of Nigerian telecom mogul Mike Adenuga.

 

The consolidated food business is an operating unit of BUA Group, a well-diversified manufacturing conglomerate founded by Rabiu in 1988. The listing of 18 billion shares at N40 ($0.0968) each gave the food-processing firm an implied valuation of N720 billion ($1.74 billion).

 

As of press time, Jan. 6, shares in BUA Foods were worth N44 ($0.1065), 10-percent higher than their implied price. At the current price, the market capitalization of the consolidated food business increased to N792 billion ($1.92 billion).

 

The value bump caused Rabiu’s fortune to increase from $5.3 billion to $7.2 billion.
His net-worth valuation includes the market value of his 92-percent stake in his cement business, which is valued at $5.3 billion.

 

The addition of his new business makes him Nigeria’s second-richest man ahead of Mike Adenuga, the founder of Globacom, Nigeria’s third-largest telecom company.

ALSO READ: BUA under fire for increasing price of cement by N200 per bag

Upon the listing of BUA Foods’ shares, the newly formed entity became the largest consumer goods company by market capitalization after Nestle Nigeria Plc, the Nigerian subsidiary of the Switzerland-based consumer goods giant, Nestle S.A.
The successful listing of its shares comes nearly a month after BUA Group spun off its five food businesses, including BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta and BUA Rice Limited.

 

The group confirmed that the merging of its food businesses into a newly consolidated food company known as BUA Foods will help the conglomerate maintain its leadership status in the agribusiness and food-processing sectors.
While speaking about his food business, Rabiu noted that listing the shares would help people realize the true value chain of the business and assist in dealing with Nigeria’s food crisis.
“A lot of people do not know the size of this business, that is why we decided to merge all the food businesses into one entity.

 

Now that we have done that, people will understand and appreciate the business,” he said.

Attah Aaron

Attah Aaron has spent over six years with Idoma Voice. He writes on religion and health.

Recent Posts

Man beaten for disputing herdsmen attack in Benue community

A man identified as AliaDoo Zape Upaa was reportedly beaten by enraged residents of Ukpiam,…

4 hours ago

Police stop pro-Peter Obi birthday rally in Kaduna over security threats

The Kaduna State Police Command has banned a proposed political rally by supporters of former…

14 hours ago

Police arrest notorious gunrunners in Benue, recover rocket launcher, AK-47s

Operatives of the Force Intelligence Department–Intelligence Response Team (FID–IRT) have arrested two notorious arms traffickers…

17 hours ago

BREAKING: Creation of Apa State, others impossible under Tinubu – Ex-Senator, Sani

Former Kaduna Central Senator, Shehu Sani, has cautioned Nigerians pushing for the creation of additional…

2 days ago

“We’re not Idoma” – Igede community pushes to return to ancestral roots in Ogoja

The Igede ethnic group in Benue State has reignited calls for relocation to what they…

2 days ago

Ex-Defence spokesman, Maj Gen John Enenche bags PhD, continues national service beyond the uniform

Former Director of Defence Information and retired military strategist, Major General John Enenche, has added…

2 days ago