Would opportunistic Reinet take an interest?
off its valuable minority stake in cellular services company Vodacom.
At the time of writing VenFin was trading at 1725c/share on the OTC market, down around 37% on its price at endJune 2008. That means VenFin has fallen harder than its largest investment – its 25% stake in technology giant Dimension Data (which has dropped around 32% since June last year). Didata represents around 30% of VenFin’s investment portfolio – which we must remember also includes around R1,7bn in cash (which, in turn, is held mostly offshore).
By our calculations, VenFin’s stake in Didata – now slightly bigger following the group’s participation in a recent sharesfor-cash issue – is worth R2,2bn. We’d also presume VenFin’s cash pile – notwithstanding some small investments – would have grown to around R1,8bn, if only because of the rand depreciating recently against major currencies. So roughly R4bn can safely be accounted for in VenFin’s portfolio, representing 1500c in value.
To put it plainly, VenFin’s current share price simply reflects the group’s holding in Didata and its cash pile.
Some pundits have been somewhat disparaging about VenFin’s remaining “rats and mice” interests, with some even tagging VenFin as nothing more than a Didata play. However, there can be little doubt there