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Sandown takes action to narrow discount
Sandown takes action to narrow discount. The investment group is changing direction after it came under pressure from shareholders to narrow its discount to NAV.
Sandown Capital has bowed to shareholder pressure and will change its investment strategy to narrow the discount its shares trade at relative to the net value of its assets.
The investment group, which was unbundled from Peregrine a year ago, plans to change its name to Zarclear and focus on investments in market infrastructure and regulation technology, complemented by a liquid and transparent portfolio.
Sandown has traded at a discount of between 20% and 40% to NAV since listening, resulting in a number of its shareholders raising concerns. Its board acknowledged that, if sustained, this would hamper its ability to raise capital over time. In July, the company said one shareholder, holding at least 10% of the voting rights, had demanded a shareholder meeting to look at reconstituting its board of directors. It said yesterday it would do this along with the other changes.
The company has been in a process of realigning its assets to fit with the changes while simultaneously focusing on minimising costs associated with managing its portfolio of assets," Sandown said. "The company is also making investments into businesses that are focused on providing market infrastructure and regulation technology ahead of the sweeping changes coming to South African financial markets under the Financial Sector Regulations Bill, commonly referred to as "Twin Peaks."
Sundown said it was in the process of applying for a trade repository licence under the new framework.
Releasing interim results yesterday, Sandown reported total revenue of R158.5 million and profit of R120 million for the six months to end-September. Headline earnings per share jumped 678% to 52.97c. Its net asst value increased by 422% to 559c per share.
Its shares closed 1.4% higher at R3.75. The announcement was made after the close of trade.
Discounts Discounts Everywhere! Very explicit comment from Sandown Capital in their annual report. $SDC pic.twitter.com/YDwiSNGpyT
-- Jan van Niekerk (@janvnrecm) August 1, 2018
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By INCE|Connect NewsSandown takes action to narrow discount. The investment group is changing direction after it came under pressure from shareholders to narrow its discount to NAV.
Sandown Capital has bowed to shareholder pressure and will change its investment strategy to narrow the discount its shares trade at relative to the net value of its assets.
The investment group, which was unbundled from Peregrine a year ago, plans to change its name to Zarclear and focus on investments in market infrastructure and regulation technology, complemented by a liquid and transparent portfolio.
Sandown has traded at a discount of between 20% and 40% to NAV since listening, resulting in a number of its shareholders raising concerns. Its board acknowledged that, if sustained, this would hamper its ability to raise capital over time. In July, the company said one shareholder, holding at least 10% of the voting rights, had demanded a shareholder meeting to look at reconstituting its board of directors. It said yesterday it would do this along with the other changes.
The company has been in a process of realigning its assets to fit with the changes while simultaneously focusing on minimising costs associated with managing its portfolio of assets," Sandown said. "The company is also making investments into businesses that are focused on providing market infrastructure and regulation technology ahead of the sweeping changes coming to South African financial markets under the Financial Sector Regulations Bill, commonly referred to as "Twin Peaks."
Sundown said it was in the process of applying for a trade repository licence under the new framework.
Releasing interim results yesterday, Sandown reported total revenue of R158.5 million and profit of R120 million for the six months to end-September. Headline earnings per share jumped 678% to 52.97c. Its net asst value increased by 422% to 559c per share.
Its shares closed 1.4% higher at R3.75. The announcement was made after the close of trade.
Discounts Discounts Everywhere! Very explicit comment from Sandown Capital in their annual report. $SDC pic.twitter.com/YDwiSNGpyT
-- Jan van Niekerk (@janvnrecm) August 1, 2018