Mar 10: Indian energy tycoon Mukesh Ambani is no longer Asia’s richest man, relinquishing the title to Jack Ma after oil prices collapsed along with global stocks.
The rout, exacerbated by mounting fears that the spread of the novel coronavirus will thrust the world into a recession, erased $5.8 billion from Ambani’s net worth on Monday and pushed him to No. 2 on the list of Asia’s richest people, according to the Bloomberg Billionaires Index. Ma, the Alibaba Group Holding Ltd. founder who relinquished the No. 1 ranking in mid-2018, is back on top with a $44.5 billion fortune, about $2.6 billion more than Ambani.
Oil plunged the most in 29 years on Monday as Saudi Arabia and Russia vowed to pump more in a struggle for market share. The slump comes just as the coronavirus is spurring the first decline in demand in more than a decade. That raises questions about whether Ambani’s flagship Reliance Industries Ltd. will be able to cut net debt to zero by early 2021, as he has pledged. The plan hinges on a proposal to sell a stake in the group’s oil and petrochemicals division to Saudi Arabian Oil Co., the world’s biggest crude producer.
While the coronavirus has curtailed some of tech giant Alibaba’s businesses, the damage has been mitigated by increased demand for its cloud computing services and mobile apps.
Reliance Industries, by comparison, has no such silver lining. The Indian conglomerate’s shares plunged 12% on Monday, the most since 2009, extending this year’s decline to 26%. Alibaba’s American depositary receipts have slipped 6.8% so far in 2020.
Ma reclaims crown after Reliance shares were pummeled in 2020.
Few of the world’s billionaires fared well in Monday’s collapse as the S&P 500 Index and Dow Jones Industrial Average each plunged more than 7.5%, the most since the 2008 financial crisis, threatening to end the longest bull market in history. But no one did worse than those whose fortunes are underpinned by oil. Wildcatter Harold Hamm’s fortune was cut almost in half to $2.4 billion and fellow oil magnate Jeff Hildebrand lost $3 billion, bumping both from Bloomberg’s 500-member wealth ranking.
In a pivot toward new businesses such as telecommunications, technology and retail, Ambani’s Reliance Industries has piled on billions of dollars of debt over the years.
It spent almost $50 billion -- most of it funded by borrowings -- to build Reliance Jio Infocomm Ltd., which became India’s No. 1 wireless carrier within about three years of its debut. As the mobile venture took off, Ambani also unveiled plans for an e-commerce empire to rival Amazon.com Inc. in India.
Addressing concerns over the liabilities, Ambani pledged in August to cut the group’s net debt to zero from about $21 billion as of last March. The Aramco deal is crucial to that plan for which Reliance Industries has valued its oil-to-chemicals division at $75 billion including debt, implying a $15 billion valuation for the 20% stake that’s for sale.
Signs of a potential delay to that deal unnerved some investors, hammering the stock since it touched a record high on Dec. 19.
Reliance Industries expected the Aramco transaction to be completed by March, but people familiar with the matter said in February that talks were still ongoing to bridge differences between the two parties over the deal’s structure.
Adding to the uncertainty, Indian Prime Minister Narendra Modi’s administration has petitioned a court to halt the proposed stake sale, threatening a key source of funds needed to pare net debt.
But Ambani, 62, may soon bounce back from the setback, said Harish H.V., managing partner at ECube Investment Advisors in Bengaluru, India.
“The game isn’t over,” he said. “Ambani has successfully built a robust business model which would keep him in the game. Moreover, his telecom business will start yielding results in coming years.”
Comments
Ananth Kumar uncultured, absolutely unfit as a politician.
This man is the worst crazy type of person as peoples rep.
You can imagine if a MP is behaving like this, what could be the credentials of his party and those who elected him.
He is so stupid, he does not have brain to think, that
To follow any religion, is required who is his father or mother.
Our constitution fully empowers every citizen to follow the religion of their choice, propagate it
also.
No religion refuses anyone from following their choice of religion.
Is Rajeev Gandhi Muslim.
This so called MP does not know also, Rajeev Gandhi’s father Firoz Gandhi was a Farsi man.
I hope Rajeev Gandhi is Muslim, but we know he is not.
Becoming Muslim is it sin. Muslim means person who submits to the will of his creator the God.
I can prove that Hege’s ancestor Father was Muslim. Our first father Adam was Muslim, biologically all were Muslims. Again Muslim means person who obeys or submits to his creator.
But later as they grow, they inherited their parents or chose to remain their parents religion.
Is it sin. This is what requ
This man is the worst crazy type of person as peoples rep.
You can imagine if a MP is behaving like this, what could be the credentials of his party and those who elected him.
He is so stupid, he does not have brain to think, that
To follow any religion, is required who is his father or mother.
Our constitution fully empowers every citizen to follow the religion of their choice, propagate it
also.
No religion refuses anyone from following their choice of religion.
Is Rajeev Gandhi Muslim.
This so called MP does not know also, Rajeev Gandhi’s father Firoz Gandhi was a Farsi man.
I hope Rajeev Gandhi is Muslim, but we know he is not.
Becoming Muslim is it sin. Muslim means person who submits to the will of his creator the God.
I can prove that Hege’s ancestor Father was Muslim. Our first father Adam was Muslim, biologically all were Muslims. Again Muslim means person who obeys or submits to his creator.
But later as they grow, they inherited their parents or chose to remain their parents religion.
Is it sin. This is what required a person to be loyal to his creator and obey his creator.
May God give wisdom to this man and save his followers.
ired a person to be loyal to his creator and obey his creator.
May God give wisdom to this man and save his followers.
This person is mentally sick and does not know about parents of Rahul Gandhi. He thinks everyone like him who has no trace of his own parents. This Gowda has no trace from where he came. He should be kicked out to andaman to live with monkeys, apes etc.
this man have more more hatrate to mulsim community..
after 2019 they will make you to count your sin did in past..
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