South Africa: Vunani proposes separate listing of private equity assets

South African financial services group Vunani has proposed to separate its private equity assets through an unbundling and a separate listing on a South African stock exchange.

The rationale for the transaction is to unlock value for shareholders by separating the financial services assets of Vunani from the private equity business. This will enable these two distinct businesses to operate in a more focused and efficient manner, thereby allowing each of the businesses to achieve their respective strategic goals and to potentially unlock value for shareholders.

”The underlying drivers of growth and profitability between the financial services business and the private equity business are very different. This has resulted in two distinct businesses within the same group. This has made it difficult for investors to interpret the financial results and also for the market to clearly understand the nature of Vunani’s business,” said the company in a statement.

The private equity business is currently comprised of investments into the following:

 – resources and energy;

 – listed investments;

 – fintech investments;

 – financial services incubation;

 – gaming;

 – commodity trading; and

 – property.

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