Stellenbosch-based liquor group Distell Group [JSE:DST] is a great company – with astute management, a diverse range of best-selling brands, strong cash flows (with rand hedge qualities) and a propensity to pour out stiff dividends on a regular basis. But Distell’s big drawback is it isn’t the most liquid stock on the JSE, with almost 90% of its issued shares locked up in the Remgro/CapVin and SABMiller arrangement.
Were it not for that scarcity of stock, Distell would be perfect fodder for institutional shareholders – especially those asset managers who look for a mix of growth and yield.
But perhaps there are a handful of reasons for some Easter cheer. Our directors’ dealings table this week shows two Distell executives selling off a whack of shares – scrip that would no doubt have been gratefully scooped up by long-parched market participants.
In the previous week, Finweek also noticed two Distell directors (plus Remgro [JSE:REM] director Emile Bührmann) selling off a few shares. While the previous directors’ dealings involved less than 10 000 shares in Distell, last week’s transaction by company secretary Stoffel Cronjé and sales director Nantha Moodley involved a more substantial transaction of more than 70 000 shares worth R5,2m.
Maybe they’ll even set a trend?
Now, we wonder, who might have picked up the shares so kindly put into the market by those Distell directors? Hopefully, a clever institutional shareholder or a few smart small investors tapped in – although we can’t discount the chances of major shareholders fortifying their positions.
We doubt Zeder Investments [JSE:ZED] – which recently gave up KWV – would want to directly top up its Distell holding, which is mainly stored away in unlisted CapeVin Holdings.
Were it not for that scarcity of stock, Distell would be perfect fodder for institutional shareholders – especially those asset managers who look for a mix of growth and yield.
But perhaps there are a handful of reasons for some Easter cheer. Our directors’ dealings table this week shows two Distell executives selling off a whack of shares – scrip that would no doubt have been gratefully scooped up by long-parched market participants.
In the previous week, Finweek also noticed two Distell directors (plus Remgro [JSE:REM] director Emile Bührmann) selling off a few shares. While the previous directors’ dealings involved less than 10 000 shares in Distell, last week’s transaction by company secretary Stoffel Cronjé and sales director Nantha Moodley involved a more substantial transaction of more than 70 000 shares worth R5,2m.
Maybe they’ll even set a trend?
Now, we wonder, who might have picked up the shares so kindly put into the market by those Distell directors? Hopefully, a clever institutional shareholder or a few smart small investors tapped in – although we can’t discount the chances of major shareholders fortifying their positions.
We doubt Zeder Investments [JSE:ZED] – which recently gave up KWV – would want to directly top up its Distell holding, which is mainly stored away in unlisted CapeVin Holdings.