SPAR bleeds one big investor as others buy the dip
Coronation has all but exited Spar while other investors pile in, against a backdrop of falling profit and boardroom turmoil.
Coronation Asset Management has nearly abandoned its investment in SPAR Group, with its stake in the retailer dropping to just 0.17% from 10.89% in August. The asset manager had been reducing its position since the end of August, cutting it from 9.53% to 5.06% before its latest sale. While Coronation has been exiting, other investors have been stepping in, with Mianzo Asset Management taking a 10.30% stake in August and Peresec Prime Brokers increasing its interest to 6.254% in mid-September.
Despite the investor turmoil, SPAR shares have risen 4.29% as of mid-morning on Thursday, although they are still down 77.43% over five years. The troubled retailer reported a tough start to the year, with group turnover up 2.1% to R67.5 billion, but headline earnings per share falling 53.9% and profit after tax declining 64.1%.
Legal and governance disputes have also plagued SPAR, including allegations of VAT fraud and a baseless application to declare the chairman a delinquent director. The company is restructuring its operations and refocusing on Southern Africa and Ireland.
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