COMPANY COMMENT: PSG catches rising tide with desalination deal
The GrahamTek development does signal a renewed energy in the deal-making department
PSG Group’s share price was motoring up on Monday after the news that it had taken a punt on a small Strand-based water desalination company, GrahamTek.While it’s easy to dismiss the deal as opportunistic in view of Cape Town’s water crisis, it would be out of character for PSG to bet on a business where prospects hinged only on winning desalination tenders from the City of Cape Town. Already there are whispers that GrahamTek – which will be incorporated into PSG Alpha power management subsidiary Energy Partners — is close to clinching another major offshore desalination contract. While the GrahamTek deal may not move the needle at PSG immediately, the development does signal a renewed energy in the deal-making department. Recent moving and shaking has seen PSG’s fast-growing private education subsidiary Curro unbundle and separately list its tertiary arm, Stadio. Stadio has clinched a successful rights offer with investor enthusiasm – as was the case with Curro – clearly evident. M...
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