Value Capital ploughs more into investments


Value Capital ploughs more into investments


Published Date: 2018-11-05 | Source: Stephen Gunnion | Author: Stephen Gunnion

Value Capital ploughs more into investments

The "engaged shareholder" lifted its stake in Altron above 20% last week and has also been buying more shares in other key investments.

Value Capital Partners has increased its interest in key investments including Altron, Sun International, PPC and Adcorp over the past six weeks. Purchases worth more than R500 million since mid-September indicate that the group, which describes itself as an "engaged shareholder", still sees value in those companies.

VCP is led by former Brait CEO Anthony Ball and former Brait financial director Sam Sithole. They use their private equity skills in the listed space to target troubled companies they can turn around - and profit from. Other companies that VCP has taken stakes in include Novus Holdings and African Phoenix. It says its portfolio of strategic investments includes businesses that are undervalued. It takes a position and works "collaboratively" with their boards of directors to improve profitability.

It raised its shareholding in Altron to over 20% last week after buying R36.5 million of the ICT company's shares at R16.50 each, R615 000 worth at R16.80 and a further R14.2 million worth at R17.43 each. Ball and Sithole are director on Altron's board.

Cement producer PPC, on whose board Ball sits, attracted purchases of stock worth about R247 million since mid-September. It bought the stock at between R5.50 and R6 per share.

VCP increased its position in gaming and hotels group Sun International in purchases totalling more than R207 million since mid-September when the share was trading between R57.50 and R60. It became a strategic shareholder in Sun International earlier this year when it partially underwrote the group's R1.5 billion rights offer.

Over the past two weeks, it bought shares worth more than R20 million in Adcorp in five transactions at between R18.85 and R19 per share. VCP's investment in Adcorp led to management shakeup last year and a restructuring of the group's operations. Sithole is a non-executive director of Adcorp, along with colleagues Paul Moeketsi and Monde Nkosi.

Altron closed 0.1% higher at R17.70 on Friday while PPC was unchanged at R5.94. Sun International closed 2% higher at R61.96 and Adcorp declined 6.7% to R19.91.


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