PSG jumps after saying it expects 40% rise in HEPS
The investment company expects interim HEPS to leap due to a fair-value adjustment of its holding in agribusiness investor Zeder
Stellenbosch-based Investment company PSG Group said on Friday it expected headline earnings per share to rise as much as 40.5% in the six months to end-August, bolstered by a fair-value gain in its Zeder holding.
Attributable headline earnings per share are expected to be between 32.6% and 34.7% higher than the prior period, with PSG's share price rising as much as 4.8% on Friday afternoon before gains were pared.
Agribusiness investor Zeder announced in September it was disposing of of its shareholding in China-based Golden Wing Mau Agriculture and Xinguajiayuan Modern Agricultural company for a total consideration of about R1.17bn.
At the time Zeder said the fair value of its investment in Golden Wing Mau was R699m.
PSG said on Friday as a result sum-of-its-parts (SOTP) value per share as at August 31 2018 was R272.94, being 7.0% higher than the R255.17 reported as at February 28 2018.
The group holds major stakes in other JSE-listed counters such as private schools owner Curro, and Stadio, as well as wealth management group PSG Konsult.
On Friday afternoon at 4.30pm PSG's share price was 3.06% higher at R216.95, or a 25.8% discount to the SOTP valuation to end-August.