Wiese-linked Stellar Capital sells off Cadiz
Cadiz has been sold to Cape Town-based wealth management business Warwick, which is headed by former Appleton prime mover Ian Kilbride
Stellar Capital Partners (SCP), the investment company that has investment tycoon Christo Wiese as a major shareholder, has sold small asset management business Cadiz for an undisclosed sum.
A statement released on Wednesday said Cadiz had been sold to Cape Town-based wealth management business Warwick, which is headed by former Appleton prime mover Ian Kilbride.
Appleton was briefly listed on the JSE in the late 1990s before being bought out by PSG Asset Management with certain parts remaining behind in IMR, which eventually formed the basis for Conduit Capital.
SCP CEO Peter van Zyl said the company had recently reviewed its future strategic direction and focus. “We have been looking for the right strategic partner for Cadiz and the sale of Cadiz Asset Management to Warwick represents a very positive and important step for the future of Cadiz.”
He said Cadiz had earned a reputation for the development of innovative structured financial products, hedge funds and money market fund excellence.
Before to the takeover by SCP, Cadiz, which was listed on the JSE, was in a downward spiral with assets under management shrinking rapidly.
It is understood that Cadiz CEO, Shawn Stockigt, who managed to steady the asset-management operation, will not be following the rest of his team to Warwick. Warwick CEO Kilbride said the Cadiz acquisition took Warwick into the retail and institutional asset management space, which formed part of the company’s three-year strategic plan.
“The Cadiz acquisition is the first of a number of deals we hope to conclude in the coming 36 months.” He said the acquisition of the Cadiz business lifted Warwick’s assets under management and administration to more than R30bn.
The Cadiz sale has heightened expectations that SCP, which trades at a substantial discount to its intrinsic value, may look at unlocking further value for shareholders by selling off other investments.
The company’s portfolio includes investments in asset manager Prescient, security technology group Amecor, electronics manufacturer Tellumat and JSE-listed Torre Industrial.