Conduit Capital: A JSE exit for Finbond?
A buyout of the financial services firm is on the cards, and delisting may become a temptation
Conduit Capital, the investment company underpinned by niche insurance operations, has topped a period of typical hustle and bustle by spearheading a bid to buy out specialist financial services business Finbond. Earlier this month Conduit — along with related party Protea Asset Management — pushed up its stake in Finbond to 36.8%, triggering a mandatory offer to all shareholders. A subsequent Sens notice from Conduit confirmed that it, along with the US-based Riskowitz Value Fund (RVF) and Ithuba Investments, would pitch an offer to Finbond minorities. RVF and Ithuba are investment entities associated with Sean Riskowitz, the CEO of Conduit Capital. No price has yet been set for the offer to minorities. But the offer price will be linked to the average price at which the Conduit consortium acquired the tranches of shares that triggered the mandatory offer. It seems doubtful that the Conduit consortium will secure 100% of Finbond, which has a market capitalisation of R2.4bn, with ot...
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