Pre-ma­ture har­vest

Vu­nani cashes out of steel maker to pay debt

Finweek English Edition - - Companies & Markets -

BLACK-OWNED AltX Vu­nani Group this week sold off its en­tire stake in steel man­u­fac­turer Alert Steel, join­ing the mil­lions of in­vestors who have re­placed their greed of three years ago with a fear of the stock mar­ket.

Vu­nani re­alised R8,4m from the sale of 17,5m Alert shares, worth a tiny frac­tion of what the share cost when it came to the al­ter­na­tive board in 2000. With Vu­nani as a ma­jor share­holder, Alert made a 135c/share de­but be­fore clinch­ing a high of 215c a month later, which has now mer­ci­lessly shrunk to the cur­rent 37c. Ethan Dube, Vu­nani CE and its rep­re­sen­ta­tive on the Alert board, will breathe a sigh of re­lief at the 48c he se­cured on the shares, at a time when it was pub­licly avail­able for 32c/share.

Vu­nani Cor­po­rate Fi­nance’s Wes­sel van der Merwe says Vu­nani en­tered into an agree­ment to sell its stake to Cap­i­tal Africa Steel, which wanted a lot more than Vu­nani’s own stake. “As a con­di­tion of the

Fast mover. Peter Moyo

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