MARC HASENFUSS: Capitec looms large in PSG’s life
One of the key issues raised at PSG Group’ results presentation was whether the Stellenbosch-based investment house is now merely a proxy for Capitec
One of the key issues raised at PSG Group’s results presentation last week was whether the Stellenbosch-based investment house is now merely a proxy for Capitec Bank. Capitec does loom large in PSG’s life, representing more than two-thirds of the sum-of-the-parts (SOTP) value. This may also explain the larger discount that PSG shares offer to the SOTP value. CEO Piet Mouton acknowledged that the Capitec proxy issue is a fair question, but emphasised that ultimately PSG is more concerned about constantly delivering value than fretting about discounts … though the discount could be a niggling factor if the group needed to issue new shares to raise cash. Mouton was more authoritative on his pronouncement on the debt levels in Curro, the private school juggernaut where PSG is the anchor shareholder. Possibly investors, despite placatory statements to the contrary, are still wondering if Curro may have to tap shareholders for fresh capital. Roughly R1bn still needs to be invested by Curr...
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