BRIAN KANTOR: Capitec unbundling shows what Naspers managers need to do
Bank’s shares may have been worth 25% less to shareholders if still on the books of PSG
PSG shareholders should be pleased. The decision to unbundle the PSG stake in Capitec has delivered to them an extra R7.85bn.
This value add for PSG shareholders is calculated by eliminating the discount previously applied to the value of the Capitec shares held indirectly by PSG. Without the unbundling, the discount applied to the assets of PSG would have been maintained to reduce the value of their Capitec shares. The market value of the 28.1% of Capitec unbundled to PSG shareholders, worth R960 a Capitec share, is now worth R31.4bn. These shares might have been worth 25%, or nearly R8bn, less to PSG shareholders if still on the books of PSG.