Capitec’s largest shareholder, PSG, says it is considering unbundling part or all of its R46bn stake in the bank, in part because of new legislation that could label it a financial conglomerate.
This could result in an increased administrative burden, the group said, while the unbundling could also unlock value for shareholders.
PSG holds 30.7% of Capitec, worth R46.1bn at the end of February. The stake represents more than two-thirds of the group’s assets.
The Prudential Authority, the regulatory arm of the SA Reserve Bank, has noted that SA’s financial system is dominated by a large number of large financial institutions, leading to a highly concentrated market, which increases the contagion risk in the financial system.
The Conduct of Financial Institutions Bill had been expected to be tabled before parliament before the end of 2019, and provides for greater regulatory oversight.
The bill had not yet been tabled, the Treasury said on Wednesday.
In morning trade on Wednesday, PSG’s share price was up 4.47% to R167.16, having fallen about 28% so far in 2020. — BusinessLIVE
PSG mulls unbundling R46bn Capitec stake
Image: SUNDAY TIMES
Capitec’s largest shareholder, PSG, says it is considering unbundling part or all of its R46bn stake in the bank, in part because of new legislation that could label it a financial conglomerate.
This could result in an increased administrative burden, the group said, while the unbundling could also unlock value for shareholders.
PSG holds 30.7% of Capitec, worth R46.1bn at the end of February. The stake represents more than two-thirds of the group’s assets.
The Prudential Authority, the regulatory arm of the SA Reserve Bank, has noted that SA’s financial system is dominated by a large number of large financial institutions, leading to a highly concentrated market, which increases the contagion risk in the financial system.
The Conduct of Financial Institutions Bill had been expected to be tabled before parliament before the end of 2019, and provides for greater regulatory oversight.
The bill had not yet been tabled, the Treasury said on Wednesday.
In morning trade on Wednesday, PSG’s share price was up 4.47% to R167.16, having fallen about 28% so far in 2020. — BusinessLIVE
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