Divergent deal-making for PSG, HCI
PSG appears poised for deal-making while HCI has always held significant debt and this may limit its options
With the local equity market in turmoil and professional punters starting to run scared, one might think a perfect play is unfolding for opportunistic and adventurous investment counters like Hosken Consolidated Investments (HCI) and PSG Group. HCI and PSG recently engaged investors, the former at a well-attended AGM and the latter during an investment presentation covering interim results. If vendor price expectations have been shaken down by the prevailing market ructions, neither PSG or HCI are making a big fuss about new opportunities. These days it might be better not to raise shareholder expectations for moving and shaking. Still, the capacity for deal-making in the two entities stands in stark contrast. PSG, which has long had a perpetual preference share structure in place, appears powerfully poised for deal-making with its gearing a mere 13%. Interest cover is a reassuring five times. Perhaps more importantly, PSG’s brains trust has been able to tap the market for fresh fun...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.