Vunani cashes out of steel maker to pay debt
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