MARC HASENFUSS: Oil to the rescue
A rising oil price has added to projected future cash flows for Global Asset Management
Global Asset Management ranks as one of the strangest counters on the JSE. Initially listed as a specialist financier of forklifts, the group has more recently broadened its operations into alternative energy solutions. The fact that Global’s shares have veered between a 20c low and a 315c high suggests the market is nowhere near taking a firm view on its longer-term prospects. The volatility presented a slight problem for Global in terms of its recent decision to raise capital through a rights issue (offering 50 new shares for every 100 already held). The pitch price was 183c a share — which discounted the last stated tangible NAV of about 212c a share. But the price was hopelessly dislocated from the ruling share price since early March. It did not help that the offer was not underwritten, with two major shareholders not following their rights. The rights offer bombed, with subscriptions for just 1.27 million, or 3.46% of the rights offer, raising only R2.3m. However, Global’s res...
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