FANews
FANews
RELATED CATEGORIES

PSG Group launches bookbuild offering of R1 billion

03 June 2014 Piet Mouton, PSG
Piet Mouton, PSG Group CEO.

Piet Mouton, PSG Group CEO.

PSG Group, the JSE-listed investment holding company with underlying investments in financial services, banking, private equity, agriculture and education, has launched a bookbuild offering of R1 billion in cash to strengthen its capital base in order to pursue attractive growth opportunities, it was announced today.

It constitutes approximately 5% of the group’s issued share capital. The offering will open with immediate effect and is expected to close by 17h00 on Thursday, 5 June 2014.
 
Making the announcement PSG Group CEO, Piet Mouton, said potential investors, including the Public Investment Corporation, have already committed to subscribe for up to R180 million of the capital to be raised.
 
"A bookbuild offering provides us with a more immediate way than a rights issue to raise capital for short-term growth opportunities that might emerge. We want to be ready when such negotiations have to take place.
 
"Following Curro Holdings’ rights issue later this month, the group will have R330 million in cash and near cash. Coupled with limited capacity for further gearing given our internal targets, we feel that we need more equity capital to support further attractive growth opportunities at specifically Curro, Zeder Investments and PSG Private Equity,” Mouton said.
 
Mouton stressed that both Capitec and PSG Konsult are well capitalised and do not need further capital at present. Capitec as a matter of fact has surplus capital and liquidity, while PSG Konsult is listing later this month only as an introduction to the market and not to raise capital.
 
The floor price of the offering is R93.22 per share, representing the maximum allowable discount of 10% to the 30-day volume-weighted average price (VWAP) of R103.58 as at 2 June 2014. The minimum value per bid is R1 million.
 
The sum-of-the-parts (SOTP) value per PSG share as at 2 June 2014 was R115.31 per share, with PSG’s share trading at a discount of about 10% to the SOTP value. The average discount to the SOTP value for the last eight years was 5%.
 
According to JSE rules the directors of the company are not allowed to partake in the offering.
 
For more information regarding the bookbuild, please refer to PSG’s website at www.psggroup.co.za or contact Johan Holtzhausen on +27 (0)21 887 9602 or +27 (0)82 558 3623.


Quick Polls

QUESTION

What is your one-liner for the 2024 National Budget speech?

ANSWER

Creepy failure to adjust income tax, medical tax credits
Overall happy, it should support economic growth
Overall unhappy, soaring public sector wages and broken SOEs suck..
There are too few taxpayers, too many grant recipients.
fanews magazine
FAnews February 2024 Get the latest issue of FAnews

This month's headlines

On the insurance industry’s radar in 2024
Insurers, risk managers unsure of AI’s judgement credentials
Is offshore the place to be in 2024?
Gap claims: erosion of medical benefits, soaring specialist fees
Investments and retirement… is conventional wisdom under threat?
Subscribe now