What Stellar plans in business model review
The firm will not sell assets despite net asset value falling 22%
Investment company Stellar Capital Partners, which trades at a hefty discount to net asset value, is reviewing its business model in a bid to recoup value for shareholders. Financial statements to end-June released on Thursday showed Stellar’s net asset value dropped 22% to 129c per share, mainly because of unrealised fair value losses in its investments in JSE-listed industrial supplies group Torre (R277m) and unlisted Tellumat (R61m). Incoming CEO Peter van Zyl stressed there was no "for sale" sign hanging over all the company’s investments. "We are embarking on a strategic review of all investments, the structure and ownership of these investments and our balance sheet structure. This won’t be done in five minutes, but we intend moving as fast as possible in getting relevant detail to the market." Speculation is rife that Stellar will sell its "industrial" investments — which include Torre, electronics manufacturer Tellumat and persistently profitable security technology business...
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