Prime Business AfricaMRS Africa Holdings Limited, an investment company founded by Sayyu Dantata, has lost over N14.05 billion from its investment in MRS Oil Nigeria Plc within the last seven months, according to Prime Business Africa’s analysis.
The investment company, which owns 60 percent (205.73 million indirect shares) of MRS Oil and is owned by Corlay Global SA, a Panama-based firm also owned by Dantata, lost the sum following a bearish sentiment experienced by MRS Oil in the Nigerian stock market between January 2 and July 24.
Join our WhatsApp ChannelAnalysis of the company’s performance in the Nigerian bourse showed that MRS Oil’s share price depreciated by 31.35 percent year-to-date, indicating equity traders in the stock market did not see the petrol retailer as a profitable asset, hence, snubbing it for the shares of rivals.
The bearish sentiment pushed the share price of MRS Oil down to N149.50 kobo per share as of July 23, from N217.80 kobo reported on January 2, reflecting the cost of buying a share of the company dropped by N68.3 kobo.
Prime Business Africa gathered that the decline in the company’s share price reduced the investment value of Dantata’s company by 31.35 percent, representing a N14.05 billion loss within the period under review.
As a result, MRS Africa Holdings’ investment value dropped to N30.75 billion as of Thursday, from the N44.80 billion the company’s shares were valued at the start of the year.
However, Dantata is not the only shareholder affected, as shareholders of MRS Oil recorded a combined loss of N23.41 billion, of which MRS Africa Holdings accounted for 59.99 percent (N14.05 billion).
Also, the 31.35 percent decline led to the market valuation of MRS Oil falling from N74.68 billion to N51.26 billion within seven months.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
