MARC HASENFUSS: Is something on the fritz at South Ocean Holdings?
Is something on the fritz at South Ocean Holdings (SOH)? Last week SOH — whose share price has lost more than 70% in the past three years — opted for a clawback offer, involving unnamed empowerment participants, to raise R20m to fund the company’s working capital requirements. The terms of the offer have not been disclosed. The pricing will be most interesting, given the share price fizzle over the years. Of course, a fund-raising exercise is not terribly surprising, as SOH has performed poorly in recent years with less-than-convincing operational cash flows. Margins have hardly been reassuring, even in the few fair trading periods. It’s probably worth reiterating that SOH’s bankers renewed a bank overdraft facility of R274m last May. But this was up for review after the interims to end-June "due to the negative financial performance of the group".Interestingly, the proposed clawback offer came scarcely a week after Mantsu Kabelo Lehloenya resigned as CFO. Her replacement is still b...
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