Stellar gets time to unlock value
Investment company’s shareholders approve contentious increase in the dividend rate on preference shares
Stellar Capital Partners (SCP), the small investment firm that has retail tycoon Christo Wiese as a major shareholder, has been given breathing room in its efforts to unlock value. Shareholders in SCP on Tuesday engaged executives in a robust debate before approving a contentious increase in the dividend rate on the company’s preference shares. Shareholders that participated in the Cape Town meeting included investment entities that have built meaningful stakes in SCP in recent months, notably Hollard-aligned investment company Westbrooke, Rational Expectations (linked to Capitec Bank founder Michiel le Roux) and Genesis Capital Partners. The R600m worth of preference shares will now carry a dividend rate of 120% of the prime rate. A drastic fall in SCP’s net asset value over the past 18 months triggered the change to the preference share structure.
According to Stellar’s interim report to the end of December, two financial covenants set out in the convertible preference share...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.