IN­VEST­MENT SHORTS

Financial Mail - Investors Monthly - - Contents - edited by Marc Hasenfuss

If Global As­set Man­age­ment was — as its name sug­gests — a wealth man­age­ment spe­cial­ist, it might have elicited more mar­ket in­ter­est when it listed in 2012.

But Global had zip to do with fund man­age­ment. Rather, it spe­cialised in the dis­tinctly un­sexy area of fork­lift fi­nanc­ing. Of late the com­pany has branched rather un­ex­pect­edly into al­ter­na­tive en­ergy — us­ing re­cy­clable ma­te­ri­als such as tyres and plas­tic as well as so­lar ap­pli­ca­tions.

Though the shift from fork­lifts to al­ter­na­tive en­ergy re­quires a se­ri­ous sus­pen­sion of be­lief, it does seem that the waste ma­te­rial projects have al­ready gained some trac­tion.

Per­haps the more open-minded in­vestors will look at it a lit­tle more se­ri­ously now that the com­pany is propos­ing an is­sue of shares to em­pow­er­ment mag­nate Pa­trice Mot­sepe’s African Rain­bow Cap­i­tal (ARC).

The deal would en­tail ARC sub­scrib­ing for 19.3m Global shares, equiv­a­lent to a 26.3% stake at a sub­scrip­tion price of 207c/share. That would give Global R40m in fresh cap­i­tal for its new en­ergy en­deav­ours.

ARC will also, for a nom­i­nal con­sid­er­a­tion, take a 46% stake in Global’s sub­sidiary En­vi­ro­pro­tek, a waste tyre re­cy­cling plant which con­verts waste rub­ber into industrial fuel oil, car­bon black and steel.

In­ci­den­tally, this is not the first time Global has wooed a se­ri­ous in­vestor. Re­cently the com­pany struck a sub­scrip­tion agree­ment for shares in sub­sidiary Plas­tic Green En­ergy (PGE) by spe­cial­ist as­set man­ager Fu­ture­growth, which holds a chunky 45% stake in PGE.

Pic­ture: iSTOCK

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