AIM-listed Blackstar lists on AltX

Johannesburg - AIM-listed investment holding company Blackstar Group SE obtained its secondary listing on AltX on Friday. The counter opened trading at R10.03 this morning.

The company said through a statement on Friday that it will list 10.5 million ordinary shares in a private placement to raise R100m, which is earmarked to finance opportunities in its investment pipeline. Blackstar's tangible intrinsic net assets equated to approximately R1bn as at 30 June 2011.

Blackstar Founder and CEO Andrew Bonamour said that the listing is likely to be attractive to investors for a number of reasons. "Blackstar was trading at a 31% discount to tangible intrinsic net asset value at 30 June 2011. The company has invested more than R1.3bn in South Africa and has a track record of outperformance".

Blackstar targets listed and unlisted investment opportunities and it plays an active role and provides advice to management teams which leverage off Blackstar's financial and business experience and network to enhance value according to the statement.

The company said their investment style incorporates the best practises from value investing, growth investing, event driven investing and opportunism. Fundamental analysis and extensive due diligence are at the core of the investment process. Blackstar's investment strategy is to achieve a balance between long-term capital growth and income, through investment in a range of listed and unlisted opportunities.

"Our rationale for listing on AltX is to enhance our connection with a market in which greater than 90% of our assets are located and to raise additional capital to fund our pipeline," explained Bonamour.

Blackstar was founded in 2005 and listed on AIM in early 2006 to pursue opportunities that would capitalise on developments on the African continent.

Current shareholders include management, Schroder Investment Management Limited, Eton Park Capital Management LP, Landsdowne Partners Limited, Midas Capital Partners Limited and Henderson Global Investors Limited, among others.

Noah Greenhill, head of Marketing and Business Development at the JSE said: "We are delighted to welcome Blackstar to AltX. Given that a significant portion of Blackstar's investments have been in public opportunities in South Africa, the listing will reinforce the company's connection with this market."

Since inception, Blackstar has increased its net asset value attributable to equity holders from £75.4m (net capital raised) to £91.8m as at 30 June 2011. "This is after returning £13m to shareholders," concluded Bonamour.

At 13:11 the counter was trading at R9.