There’s more to PSG than Capitec, but you can’t see it
Maybe it’s time to unbundle the banking moneyspinner and let the promising smaller investments shine
There might have been a time in the not too distant past when the market eagerly awaited the results of the adventurous PSG Group (https://www.sharenet.co.za/v3/quickshare.php?scode=PSG).
But these days – with more than 90% of the sum-of-the-parts (SOTP) value made up of a handful of listed investments – the likelihood of a surprising development is remote.
At last count, PSG’s 35.5 million shares in Capitec Bank (https://www.sharenet.co.za/v3/quickshare.php?scode=CPI) accounted for a whopping 70% of the SOTP value. The Capitec stake of about R48bn not only overshadows PSG’s other investments but also makes it difficult for the group to make investments that will move the needle...