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Cape Town - Paladin Capital, PSG's preferred investment vehicle, has bumped up its stake in Curro, a private education venture, to 76%.
In releasing results for the year ended February on Tuesday, Paladin, which already owned 50% of Curro, disclosed the purchase of a further 26% stake for R52m.
The latest transaction infers a value of around R200m for Curro, which operates private schools in Durbanville, Roodeplaat, Hazeldean and Langebaan.
Curro, which has set a medium-term target of opening 15 schools around SA, is set to open schools in Hermanus and Bankenveld next year.
Paladin has also helped Curro to secure a R73m ten-year, fixed rate loan facility from the International Finance Corporation.
Paladin reported that the intrinsic value of its portfolio had leapt 140% to R1.17bn. With additional shares in issue following Paladin's listing on the AltX in September last year, the increase in intrinsic value on a per share basis was 65% to 203c/share.
Paladin holds 13 investments. These include other investment companies (Thembeka and Spirit), service companies (CIC, IQuad and African Unity), mining/construction interests (Precrete, Petmin, Erbacon and Topfix), manufacturing (GRW, Lesotho Milling and Protea Gietery) and education (Curro).
It reported that its most recent intrinsic value estimation, which is after the financial year end, was 212c/share.
That means Paladin's shares, which closed at 230c on the JSE on Tuesday, are trading at a premium to the last stated intrinsic valued.
It's unusual for an investment company to trade at a premium to the underlying value of its investments, unless the market is certain the company is markedly undervaluing one if its unlisted investments.
- Fin24.com
