MARC HASENFUSS: Trans Hex is still waiting to shine
Quick flash at the goings on at three companies: Trans Hex, Astral Foods and Finbond
The major shareholders of Trans Hex Group certainly have a very different opinion of the value of the diamond miner’s shares than the rest of the market. Last week Trans Hex acquired another 27.2% stake in unlisted diamond miner West Coast Resources (an old De Beers operation) from RAC Investment Holdings, which itself is a major shareholder in Trans Hex. Trans Hex now owns more than 67% of West Coast Resources. The R39.1m deal will be funded by the issue of 9.4m new Trans Hex shares, meaning an effective price of 414c/share. That’s well above the levels seen in Trans Hex over the past month — and the price of 297c at the time of writing. The deal was struck by two parties with considerable knowledge of the respective assets, which suggests the market might take note of the transaction terms. The deal infers a value of about R145m for West Coast Resources, or R130m if the Trans Hex market price is used as a value gauge. The carrying value of Trans Hex’s original 40% stake in West Co...
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