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PSG Group to offload 28.11% stake in Capitec to shareholders

Post-unbundling it will retain a 4.3% shareholding in the bank.
PSG will distribute 32.5m Capitec shares at an attributable value of R125.48 per share. Image: Moneyweb

Investment holding company PSG Group said on Wednesday it would offload 28.11% of its stake in Capitec Bank to its shareholders.

In April the South African firm, the largest shareholder in Capitec Bank with a 30.7% stake, said new laws could lead its holding to be defined as a conglomerate and this would substantially increase the administrative burden on the company.

The unbundling will also assist in reducing “the discount at which PSG Group shares trade to the company’s sum-of-the-parts value and to unlock value for PSG Group,” it said in a statement.

Read: How will PSG fix its ‘Capitec problem’?

It said the unbundling would be implemented based on the distribution ratio of 14 Capitec shares for every 100 PSG Group shares held in the Group by shareholders.

It will distribute 32.5 million Capitec shares at an attributable value of R125.48 per share. After the unbundling it will retain a 4.3% shareholding in Capitec, the statement added.

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This will help with reflecting a clear SOTP for PSG and will provide shareholders (additional) direct shareholding in Capitec, but what will PSG trade at after unbundling? Will it return to mid R60 levels as seen in 2011?

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