COMPANY COMMENT: Bizarre response to Viceroy’s unimpressive report on Capitec
Viceroy’s latest effort may be clumsy, but it won’t be the last time our market gets hit by this sort of tactic
The Viceroy report on Capitec was, according to informed and independent individuals, an unimpressive piece of work. Poorly researched and too many dots connected by opinion rather than facts, was how one industry expert described it. It wasn’t that the report didn’t reflect important critical problems with Capitec’s business model, but they got lost in the broad swipe at the company. This isn’t the first time many of these issues have been raised. In 2014, shareholder activist Theo Botha pitched up at the group’s annual general meeting to interrogate the board about its unsecured lending policies. "We don’t lend to social grant recipients, we have a large chunk of retail funding and our provisioning is far more conservative," Capitec CEO Gerrie Fourie said at the meeting. Most of the shareholders at the meeting were persuaded, helped by the returns they had earned from the share’s strong performance. But perhaps the most puzzling aspect of the Viceroy research report was the respon...
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