Very ac­com­mo­dat­ing

Finweek English Edition - - Companies & Markets - MARC HASEN­FUSS

????? 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?

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