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Abil posts interim profits of R400m

Profits generated exclusively by Stangen.

JOHANNESBURG – African Bank Investments Limited (Abil), which last month emerged from a nearly 12-month business rescue process, has posted net profit after tax of R443 million for the six months to March 2016.

The company’s only trading subsidiary, insurance company Stangen, generated these profits exclusively, Abil said in a statement on Thursday evening.

Earnings and headline earnings per share were 29.5 cents per share for the six-month period.

Total shareholder equity amounted to R1.6 billion at March 31.

“The resultant solvency and liquidity ratios confirm the financial stability of the Group,” the statement said.

Total cash and cash equivalents came to R1.9 billion.

Following the successful payment of its creditors – to the tune of R1 billion – Abil has cash reserves of R250 million.

“As a result of the successful business rescue process the company is no longer distressed and can continue to operate as a going concern,” former business rescue practitioners (BRP), John Evans and Dawie van der Merwe recently told Moneyweb.

Abil was placed into business rescue in June 2015 following the failure of its subsidiary, Ellerine Furnishers to repay loans to large South African banks for which Abil was the guarantor.

The BRPs will continue to manage Abil’s assets on behalf of its board.

The current Board will convene an annual general meeting at which new directors will be proposed and voted on by shareholders, the statement said.


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When is Abil listing on the Jse again ? Anybody knows?

ABIL AGM expected at end of July 2016 : the re-listing should be on the agenda and thus we could expect the ABL share and the ABLP prefs to trade shortly after.
There will be some interesting price exploration !!!

Surely you mean exploitation

It is a holding company – not an operating company – the “exploitation” if any was done by African Bank

And a name change on the agenda.

I guess with a consolidated NAV of R1.6 billion for ABL at 30 March 2016 – that means that the ABLP’s are worth their full face value over time (R85 x 13m pref shares = R1.1bn ) – which leaves a NAV of around R500m for the ordinary shareholders i.e 33c (R500m / 1.1billion shares = 33c )

Obviously there are costs involved and maybe some provisions but it does seem that Prefs (ABLP) could get full value and ordinary shares (ABL) should be priced above 10c ?

Any thoughts from all those ABL & ABLP followers out there ??????

How will this affect that “haircut” thing they did?

Phil the above all relates to the holding company – the haircuts etc was taken by senior bondholders in African Bank – African Bank was one of the subsidiaries of ABIL (holding company – full name is African Bank Investments Limited).

Stangen, Ellerines and African Bank are all subsidiaries of ABIL.

Yes all very confusing. So the holding company and its prefs will relist whilst African Bank was placed into curatorship and split into a “Good” Bank and a “Bad” Bank.

The “Bad”Bank has been renamed Residual Debt Services Limited whilst the “Good” Bank is still named African Bank

This is interesting. I don’t see any professionals venturing a valuation on these shares. They are too cautious and conservative for that. So up to us ignorant fools.

We are dealing with a company scrubbed out under a microscope of any possible gremlins. Surely pe of 3 would be very undemanding? Unless I am missing something somewhere north of R1 per share?

Jonny – the Stangen business is in unwind mode i.e the profits you see are from policies previously sold to African Bank borrowers. This is no longer the case as this business is no longer given to Stangen. So my valuation above is on a current known NAV basis and is probably closer to the new reality. The unencumbered NAV of the ordinary shareholders is R500m plus.

End of comments.




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