Strategic investor dumps shares in African Phoenix Investments

Turnaround specialist Value Capital Partners (VCP) has sold its significant shareholding in African Phoenix Investments (API), the company that emerged when African Bank Investments Limited (Abil) came out of business rescue.

VCP sold its entire stake for R181.2m, API said, while VCP investment manager Monde Nkosi also resigned as a non-executive director on the API board.

African Phoenix, which owns insurer Stangen, said in a regulatory filing that VCP had sold 226.5-million, or about 16%, of its A ordinary shares on the open market for 80c apiece.

Coronation Asset Management also sold its entire stake.

The company’s shares were 1.4% down at 71c in early trade on Wednesday.

API said Zarclear had bought shares from VCP, Coronation and Allan Gray, taking its stake in the company to 21.8%.

“Zarclear will be formally engaging with the company and its other major shareholders to explore and pursue value-unlocking initiatives for the mutual benefit of both the company and Zarclear and their respective shareholders,” API said.

VCP’s other investments include a 21% stake in Altron and a large stake in PPC.

Altron, the former JSE heavyweight that owns Altech, Bytes Technology Group and Netstar, was floundering when VCP invested R400m in the technology group in December 2016.

Its shares back then were at R6.95, but have since risen to R27.19 on Wednesday morning.

hedleyn@businesslive.co.za