South Africa's PSG Group to offload 28.11% stake in Capitec to shareholders
|05/28/2020 | 03:52am|
Investment holding company PSG Group Ltd said on Wednesday it would offload 28.11% of its stake in Capitec Bank to its shareholders.
In April the South African firm, the largest shareholder in Capitec Bank with a 30.7% stake, said new laws could lead its holding to be defined as a conglomerate and this would substantially increase the administrative burden on the company.
The unbundling will also assist in reducing "the discount at which PSG Group shares trade to the company's sum-of-the-parts ("SOTP") value and to unlock value for PSG Group," it said in a statement.
It said the unbundling would be implemented based on the distribution ratio of 14 Capitec shares for every 100 PSG Group shares held in the Group by shareholders.
It will distribute 32.5 million Capitec shares at an attributable value of 125.48 rand per share. After the unbundling it will retain a 4.3% shareholding in Capitec, the statement added.
(Reporting by Nqobile Dludla; Editing by Mark Heinrich)