PSG mulls reducing its majority shareholding in Capitec Bank

DURBAN – PSG Group shot up more than 6percent in early trade yesterday after the investment holding company said it was mulling reducing its majority shareholding in Capitec.

PSG said that it was considering unbundling some or all of its shares in Capitec as new laws from the Prudential Authority could lead to its holding to be defined as a conglomerate and increase its financial burden risk.

The group, which is owned by the Mouton family, said conglomerate status would substantially increase the administrative burden of its 30percent holding in the country’s largest bank by customers.

PSG said given the substantial discount at which PSG shares traded to its sum-of-the-parts value, the board believed that offloading the Capitec holding would unlock value for shareholders. Chief financial officer André du Plessis said the group had been a supporter of Capitec since inception in 2000 and valued its relationship with the bank.

“PSG Group explained its reasons for considering the potential unbundling of all or a part of their interest in Capitec to its shareholders in its cautionary this morning,” Du Plessis said.