Trencor shareholders can barely contain themselves


Trencor shareholders can barely contain themselves

Share price spikes as unbundling of value-destroying holding in US-owned Textainer edges nearer

Ann Crotty

The increase in the Trencor share price ( appears to be gaining momentum as the proposed unbundling of its controlling stake in marine cargo container group Textainer edges closer. On Monday Trencor added over 6% to R30.80, which is just R2 off its 12-month high.

Analysts could see no immediate reason for the spike given that confirmation of the unbundling of Textainer was already two weeks old and the plan to distribute the 27.2 million shares has been on the cards for years. But then trading patterns don’t always appear logical.

Certainly Trencor shareholders have been remarkably patient with the value-destroying structure over its 48% stake in Textainer. It appears that control structure has done little more than enable the Textainer management to get away with a dismal long-term performance. ..

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