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PIC’s Isibaya fund sells Capitec stake to black-owned group

Capitec’s stock has advanced more than 90% in the past six months.

The Public Investment Corp., Africa’s largest fund manager, sold shares in Capitec Bank Holdings held through its Isibaya fund to a black-owned group.

“Capitec has been informed that the Isibaya Fund has reached agreement to dispose of its interest in Capitec,” the Johannesburg-based lender said in a statement on Tuesday. “It is an arm’s-length transaction facilitated by a third party through a bookbuild process.”

Investec Bank was appointed to sell a stake of about 3.4% in Capitec, a South African provider of unsecured loans, to institutional investors, Investec said in a separate statement. It sold 3.7 million ordinary shares for R505 ($41.90) each at a discount of 6.5% from the closing price on Tuesday.

African Bank Investments’s failure in August helped Capitec increase market share as it gained customers from its larger rival. Capitec’s stock has advanced more than 90% in the past six months.

Client numbers increased by 856,000 to 6.2 million in 2014, Capitec said in March, with 16.8% ofSouth Africans regarding it as their primary bank.

“Capitec supports the transaction as it enhances its black economic empowerment credentials,” it said.

©2015 Bloomberg News

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For the grace of it all… I still dont understand how Capitec share price is higher than all the South African big banks… a micro-lender? its share price is 10 times that of FSR, 2 times that of Nedbank. Maybe I don’t understand valuations but I’m not blind.

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