Johannesburg – JSE-listed investment holdings group PSG Group [JSE:PSG]
said on Friday its subsidiary Paladin Capital [JSE:PLD]
is expected to receive close to 50% of the proceeds from the R723.8m sale of Namibian company CIC Holdings [JSE:CIC].
This comes after Imperial Holdings [JSE:IPL]
announced on Tuesday that it had made an offer to acquire 100% or R252.18m shares of CIC for R723.8m, equalling R2.87 per share.
The JSE-listed Paladin owns 123.47 million shares in CIC, meaning that it will receive R354.36m from the CIC sale if the deal goes through.
CIC, which is listed on the JSE, operates within the fast moving consumer goods (FMCG) industry through distributor agreements with blue chip manufacturers, both locally and internationally.
In turn, PSG Group [JSE:PSG]
holds 80.62% in Paladin, an investment company.
PSG Group said in a statement CIC had been a star investment for Paladin, showing significant growth in the last few years.
"However, management feels that CIC will benefit from forming part of the Imperial group going forward," PSG Group said.
Paladin, PSG Group said, will use the sale proceeds to grow Paladin's educational investment division and to take advantage of investment opportunities in the market, as when same present themselves to Paladin.
PSG Group also provided pro forma financial effects of the disposal, saying basic earnings per share would likely rise 50.5% to 225.8 cents from 339.8 cents.
PSG's basic headline earnings per share is expected to increase 2.9% to 249.2 cents from 241.9 cents.
- I-Net Bridge