Trencor to sit tight with its R1.1bn cash pile
Specialist investment group Trencor will sit on its R1.1bn cash pile for the next 12 to 15 months. The company appears to be playing it safe ahead of a much-anticipated unbundling of its main asset: the New York Stock Exchange-listed container leasing group Textainer. Trencor’s cash pile — at the end of 2017 — was equivalent to around R6.19 per share, which has increased speculation that Trencor could weigh up paying out a special dividend or embarking on an aggressive share buy-back exercise. Trencor’s share price is trading at around R32.60, having lost more than 30% of its value in the past six months.
Writing in the latest annual report, CEO Hennie van der Merwe said Trencor’s board reckoned it prudent to preserve cash resources. He did, however, indicate that there might be an opportunity for Trencor to invest in main Textainer or TAC to assist with funding growth opportunities for these entities. On Monday, Van der Merwe said the board discussed the possibility of a spec...