Cape-based investment company Trematon Capital has more than halved its position in gaming investment company Grand Parade Investments (GPI), according to its financial results released on Wednesday.
Trematon reported that some profitable sales in GPI shares in the year to end-August 2009 had reduced the holding in the gaming company from 12.8 million to 5.2 million shares.
Trematon built its strategic stake in GPI prior to the group's listing on the JSE. At current prices, Trematon's remaining stake in GPI is worth about R12m.
Trematon has not been the only seller of GPI shares recently with another strategic shareholder, Cape Empowerment Trust, showing a willingness to cash in its GPI shares as well.
Trematon pointed out it had no direct involvement with GPI and that the investment represented a small minority investment stake acquired at favourable prices.
Trematon's remaining shares are, however, subject to a voting pool agreement with a black economic empowerment (BEE) trust.
Overall, Trematon endured another tough period with its net asset value (NAV) - the most important measure in an investment company - dipping to 81 cents per share (from 88c/share previously).
Aside from GPI, Trematon holds a number of listed investments - most notably a 7% stake in building supplies group Mazor and 111 million shares in property group Ingenuity.
If Trematon's Ingenuity stake - which the company values at 60c/share - is marked to its market price, Trematon's NAV declines to 71c/share.
But arguably Trematon's most interesting investments are of the unlisted variety.
The group holds a 34.2% stake in Club Mykonos Langebaan, which not only offers exposure to property development opportunities on the Cape West Coast but also an indirect strategic stake in the Mykonos casino.
Another promising property asset is the Faircare Trust, where Trematon effectively owns 40% and is responsible for the management and operation of upmarket retirement villages in the Western Cape.
These villages include Cle du Cap (Tokai), Noordhoek Manor, Onrus Manor, Heritage Manor and Bridgewater Manor (both in Somerset West).
Other property investments include a 50% stake in Stalagmite (a development of industrial land in the Strand), a 37.5% stake in Boulevard Park (a commercial development on the N2 close to the Cape Town CBD) and a 40% interest in Wembley Square II.
Loans due to Trematon from Boulevard Park and Wembley Square collectively top R60m.