EDITOR’S NOTE: Market is ready for an activist investment fund
The emergence of value Capital Partners (VCP) as an influential shareholder at services conglomerate Adcorp heartens me greatly. Shareholder activism has largely been the domain of tireless individuals such as Theo Botha, who too often can’t back up valid shareholder concerns with voting muscle. Goodness knows, if Botha had had influence, sad sagas such as Sage might have turned out differently.
Adcorp, which was once rated as a top second-line share, has been in a tough space for a while, and shareholders will surely recognise that the intervention by VCP was probably not a moment too soon. It’s not uncommon for shareholders to sit on their hands for far too long, remaining hopeful that an operational or strategic tangle will eventually be resolved sans corporate ructions. Distribution & Warehousing Network (Dawn) is a recent example where early intervention by major shareholders might have prevented some serious value destruction. VCP, featuring Anthony Ball and Sam Sithole, is clearly more determined than diplomatic. It has already made its presence felt at technology giant Altron, and shareholders must be thrilled that since the new directional shareholders took charge the share price rose around 25%.
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