Why the market is cautious over listing of Curro’s tertiary unit
Share price reflects uncertainty ahead of unbundling from schools
Hopes are high for the coming unbundling of Curro Holdings’ tertiary education operations but questions are being asked about the fledgling division’s ability to reproduce the rapid growth of the schools division. JSE-listed private education business Curro announced its intention to unbundle the tertiary education division, called Stadia, into a separately listed company in February. Nico de Waal, an executive at leading shareholder PSG, said the unbundling and separate listing would ensure there was a dedicated management focus to grow and manage this specialist business. The new tertiary division would offer courses in education, commerce and information technology, while increasingly focusing on distance learning to augment its predominantly contact-learning offering. Curro’s share price seems to reflect investor uncertainty around the unbundling as well as the performance of Stadia. Mergence Investment Managers equity analyst Nolwandle Mthombeni said the tertiary division was a...
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