Abdulsamad Rabiu, BUA Group Founder now Second Richest Man in Nigeria

Alt: = "Abdulsamad Rabiu, Founder BUA Group"

Abudusamad Rabiu, Nigerian billionaire industrialist has become the second richest billionaire in Nigeria with a net worth of $7.2 billion. Rabiu displaced owner of telecom giant, Globacom, Mike Adenuga, whose current net worth stands at $6.6 billion.

BUA Food Plc, completed the listing of its shares on the Nigerian Exchange on Wednesday Jan. 5, after it received the requisite approvals from the regulatory authorities.

 Upon the listing of BUA Foods’ shares, the firm 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.  BUA Group has five different food businesses that make up the new conglomerates, BUA Food PLC. The businesses include BUA Sugar Refinery Limited, BUA Oil Mills Limited, IRS Flour, IRS Pasta and BUA Rice Limited.

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 at 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 jacked Rabiu’s fortune to rise 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.

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. Mr Rabiu  said the merger and listing of the shares of his food businesses would help people understand 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 noted.

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