PSG at two-month high after announcing Capitec unbundling

A Capitec Bank branch in Braamfontein, Johannesburg.
A Capitec Bank branch in Braamfontein, Johannesburg.

The share price of investment holding company PSG was at a two-month high on Thursday, after saying after markets closed on Wednesday it planned to offload 28.11% of Capitec to shareholders.

In morning trade PSG was up 2.04% to R171.35, outperforming the broader market, with the all share up 0.67% and the financials index 0.7% was higher.

PSG had said in April it was considering offloading the stake, citing new regulations that could label it a financial conglomerate, which would add to its administrative burden.

PSG intends distribute 14 Capitec shares for every 100 PSG shares held, a distribution of about 32.5-million shares, with an attributable value of R125.48 each.

After the unbundling PSG will hold 4.3% of Capitec.

In morning trade, Capitec was down 1.45% to R877.23, while the JSE's banks index had gained 0.5%.