Sabvest offshore share portfolio grows to R82m
Low-key investment company Sabvest has re-established its offshore equity portfolio and made three new investments in the six months to end-June.
The company has a diversified portfolio worth R2.2bn – the biggest holding is a controlling stake in unlisted industrial textile manufacturer SA Bias Industries. Large JSE-listed holdings include financial services specialist Transaction Capital, storage business Metrofile and chemicals business Rolfes.
Interim results released on Monday showed that Sabvest — headed by Chris Seabrooke – increased its offshore share portfolio to R82m from a nil position when the financial year ended on December 31. It reduced its offshore bond portfolio from R128m at financial year end to about R80m.
Seabrooke said the primary focus of the share portfolio was the technology and biotech sectors. Sabvest’s offshore bond portfolio comprised 16 fixed date redeemable bonds and three bond-loan funds.
Equities and bond portfolios, both geared, performed satisfactorily, he said.
Sabvest made three new investments in the period, acquiring a 25% stake in unlisted consumer brands specialist Classic Food Products and buying 2-million shares in Brian Joffe’s Long4Life for R13m and 200,000 units in Value Capital Partners Fund for R20m.
Sabvest took advantage of a weaker share price in investment company Brait to buy 41,523 shares and increase the overall holding to 800,000 shares. Another R4.5m was invested in London-listed security technology specialist Corero Network Securities, upping Sabvest’s stake to 6.5%.
The company’s influential stake in JSE-listed industrial conglomerate Torre was restructured in the period to secure a "look-through" holding of almost 63-million shares. With the share price discounting the latest net asset value of R37 a share by more than 30%, it was not surprising that Sabvest repurchased 82,372 Sabvest ordinary shares and 125,056 Sabvest N-shares for R5.1m.
The interim dividend was hiked 13% to 26c a share, underpinned by strong operational cash flows of R43m