Stefanutti takes another knock as PSG slashes its stake

Stefanutti Stocks [JSE:SSK] saw its share price drop by as much as 13% on Thursday following an announcement that PSG Asset Management would, on behalf of its clients, be reducing its total interest in the construction firm from 8.9% to 3.89%. 

By the end of trade on Thursday, Stefanutti's share price was down 12.90% at 27c per share. 

Stefanutti Stocks was among four contractors of the Eskom's Kusile power station that, according to a Daily Maverick report in November, made substantial payments to a business, Babinatlou Business Services, whose account was allegedly used as a "slush fund" to benefit Eskom officials.

At the time, Stefanutti issued a notice to shareholders, saying it had been engaging with the Special Investigation Unit on the matter, and that the amount of R2m paid to Babinatlou related to a corporate social investment initiative – in particular, the completion of a four-classroom block at a high school in Limpopo.

Stefanutti further said that effort was made to ensure the monies were used for the intended purpose.

Approximately three weeks ago, Stefanutti's share price plummeted nearly 20% when Sanlam Investments reduced its interest from just under 10% to just under 5%. Its share price has, in recent months, fallen as low as 7c, more recently recovering to the 20c range.