StratCorp’s loan sinks

Pool main­te­nance group looks in trou­ble

Finweek English Edition - - Companies & Markets - MARC HASEN­FUSS march@fin­

TWO WEEKS AGO our cover story – head­lined “Hell to pay” – sur­veyed the value re­main­ing in the sur­feit of un­listed ven­ture cap­i­tal com­pa­nies ped­dled to in­vestors over the past 12 years. In that re­port Fin­week was un­able to es­ti­mate the value left in three re­cent projects – APMI Hold­ings, Su­per­tow In­ter­na­tional and Glob­alJewel – be­cause their long over­due au­dited fi­nan­cial state­ments weren’t made avail­able.

But share­hold­ers in those three com­pa­nies should be able to get an inkling of what their in­vest­ments are worth by looking at the an­nual re­port for listed fi­nan­cial ser­vices counter StratCorp – a strate­gic in­vestor in all three com­pa­nies, hold­ing 15% of APMI, 13% of Glob­alJewel and 11% of Su­per­tow. (See story on p38.)

StratCorp’s an­nual re­port states those in­vest­ments are classified as “held for trad­ing” and are car­ried at cost, as fair value can’t be de­ter­mined. How­ever, the notes to StratCorp’s re­sults put a “fair value” – net as­set val­u­a­tion – on the un­listed in­vest­ments. Its 11% stake in Su­per­tow is val­ued at R3m (well up on last year’s R605 000) and its 13% stake in Glob­alJewel is now worth R18m (last year: R6m).

How StratCorp cal­cu­lated those val­u­a­tions is un­cer­tain be­cause – as far as Fin­week can as­cer­tain – nei­ther Su­per­tow nor Glob­alJewel has is­sued au­dited fi­nan­cial state­ments.

It does seem StratCorp has made a very de­fin­i­tive call on APMI. This un­listed ven­ture cap­i­tal com­pany – which mar­kets the Pool­cop au­to­mated swim­ming pool main­te­nance sys­tem – is ac­corded no value by StratCorp. Last year its 11% stake in APMI was worth R445 000.

Per­haps the “write off ” in value isn’t sur­pris­ing, see­ing that StratCorp had to im­pair a R1,4m loan to APMI. That loan was se­cured by a pledge of 5m shares by APMI as well as a gen­eral no­tar­ial bond on all floor stock. StratCorp ad­vised in its an­nual re­port it took ces­sion of stock to the value of R1,4m with no men­tion made of the pledged shares.

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