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Johannesburg - Paladin Capital [JSE:PLD], the private equity company owned by PSG Group [JSE:PSG], will probably look to diverting a good chunk of its windfall from the sale of its strategic stake in CIC Holdings [JSE:CCI] into private education investments.
The stake in CIC, which was sold to transport conglomerate Imperial Holdings [JSE:IPL] this week, was by far Paladin's largest investment. The R340m that will be cashed out from the CIC sale represents about 25% of Paladin's market capitalisation, and is equivalent to almost 60 cents per share.
Despite Paladin indicating at a recent annual general meeting that it would probably not be contemplating dividends for the foreseeable future, some market watchers have raised the possibility of Paladin paying a special dividend.
That seems highly unlikely. On Wednesday, Paladin CEO Francois Swart said a dividend would only be considered if the company couldn't put its funds to good use.
"At the moment we see plenty of opportunities, and the pricing is attractive."
Swart said Paladin had already identified private education as a strategic investment area. Paladin holds a 76% stake in Curro Holdings, a private education venture.
Paladin's most recent investment in Curro - where the company paid R50m for an additional 26% stake in the business - values the unlisted private education business at just over R200m.
Currently Curro operates private schools in Durbanville, Roodeplaat, Hazeldean and Langebaan. It plans to open 15 schools, with new openings set for Hermanus and Bankenveld in 2011.
- Fin24.com
The stake in CIC, which was sold to transport conglomerate Imperial Holdings [JSE:IPL] this week, was by far Paladin's largest investment. The R340m that will be cashed out from the CIC sale represents about 25% of Paladin's market capitalisation, and is equivalent to almost 60 cents per share.
Despite Paladin indicating at a recent annual general meeting that it would probably not be contemplating dividends for the foreseeable future, some market watchers have raised the possibility of Paladin paying a special dividend.
That seems highly unlikely. On Wednesday, Paladin CEO Francois Swart said a dividend would only be considered if the company couldn't put its funds to good use.
"At the moment we see plenty of opportunities, and the pricing is attractive."
Swart said Paladin had already identified private education as a strategic investment area. Paladin holds a 76% stake in Curro Holdings, a private education venture.
Paladin's most recent investment in Curro - where the company paid R50m for an additional 26% stake in the business - values the unlisted private education business at just over R200m.
Currently Curro operates private schools in Durbanville, Roodeplaat, Hazeldean and Langebaan. It plans to open 15 schools, with new openings set for Hermanus and Bankenveld in 2011.
- Fin24.com
