Shareholder concerns about rights dilution sway Ninety One

Shareholders of London and Cape Town-based asset manager Ninety One have raised concerns about the dilution of their rights and investments, with 20% of them voting against the general authority to issue ordinary shares for cash in terms of the listings requirements of the local bourse.

“The board recognises shareholder concerns regarding the dilution of their rights and investments and reiterates that it now has no intention to issue new shares under the general authority. Notwithstanding this, the board believes that the general authority is important for maintaining flexibility and optionality in Ninety One’s capital management,” the company said on Tuesday.

“The board will continue to engage with a wide range of shareholders in the coming months to further understand their position on the matter of share issuance under the general authority and will provide an update in the Integrated Annual Report 2024.”

The company reported a slight upturn in its assets under management during the third quarter of 2024.

The group, headed by Hendrik du Toit, reported assets under its custody of £124.2bn, up from £123.1bn three months earlier. It bled £4.3bn in assets under management in the six months ended September, taking its overall assets under custody to £123.1bn, as its UK business came under pressure.

Du Toit at the time said they have held up well in the SA market, but was worried about long-term prospects if the economy does not start creating jobs and wealth.

khumalok@businesslive.co.za