COMPANY COMMENT: Stellar shareholders not all that inquisitive
Stellar’s shares are trading at an enormous discount to intrinsic net asset value while EOH's Asher Bohbot’s surprise exit from the business has given rise to questions
The silence was somewhat baffling, considering that Stellar’s shares are trading at an enormous discount to intrinsic net asset value. One might have expected at least one polite inquiry about initiatives to unlock the trapped value. Stellar holds an influential stake in JSE-listed industrial supplies specialist Torre, which announced a small bolt-on acquisition just ahead of the meeting. But Stellar also holds commanding interests in asset manager Prescient and security services specialist Amecor — two companies well known for their cash-generation prowess. Far be it for Business Day to ask questions at shareholders’ meetings, but surely a timely question would be whether there is any consideration being given to unbundling the stake in Torre to shareholders. Or, perhaps more succinctly, whether it is worth holding onto Torre in hope of a recovery and perhaps an opportunity to sell the business at a value markedly higher than the current market value. The point is, the travails of ...
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