????? ONE OF Finweek’s regular gripes is that listed companies often don’t make a huge effort in listing their main shareholders. Every listed company needs to disclose its main shareholders in its annual report. But more often than not companies simply list those shareholders who hold more than 5% of their issued share capital.
That reduces the section of the annual report offering “shareholder analysis” to a list of one or two (perhaps three) main shareholders. Of course, such an abridged shareholder list makes in-depth shareholder analysis from the annual report quite impossible.
So please take a bow City Lodge Hotels for again making its “shareholders’ analysis” segment of its annual report relevant and meaningful as well as fun to peruse. If City Lodge had adhered to the traditional 5% threshold for disclosing material shareholdings, then its annual report would have shown only one major shareholder – Enderle SA (the vehicle housing the interests of founder and chairman Hans Enderle).
Thankfully, City Lodge insists on disclosing all shareholders holding more than 1% of the company’s issued shares. So apart from Enderle we have another 14 major shareholders listed in the group’s shareholders’ analysis. From that comprehensive list we can deduce City Lodge is a share with ample liquidity, as major investors hold only 38% of the issued shares. That means City Lodge is a share that can be easily bought and sold by ordinary shareholders.
The notion that the perennially profitable City Lodge is suitable for “widows and orphans” is reinforced by the presence of a number of institutions in its major shareholders’ list. Those include the Public Investment Corporation, Nedbank’s highly rated Rainmaker Fund, Old Mutual High Yield, Fidelity Funds, Sanlam Investment Management and Investment Solutions. Interestingly, Oasis Property Equity Unit Trust Fund holds a 1,87% stake in City Lodge – which is an interesting departure from the usual real estate counters found in property unit trusts.
The biggest individual shareholder in City Lodge – aside from Enderle, of course – appears to be H Roberts, with a 1,6% stake. That wouldn’t be Hugh Roberts, the former executive of African Life, would it?