Safety first for Paladin?
AT THE recent PALADIN CAPITAL AGM executive director Piet Mouton – in a rather broad rumination about strategy – cited the security sector as a possible investment opportunity. Mouton intimated the private security sector – much like private education (where Paladin has a big stake in newly listed Curro Holdings) – is an industry that doesn’t scratch to find demand for its services.
Apparently private security guards now outnumber South Africa’s Police Force. However, as Mouton pointed out the barriers to entry aren’t exactly high.
Whether Paladin would consider starting its own security services (even if Paladin Security has a really reinforced ring to it) seems doubtful. That would require a rather hectic bit of corporate manoeuvring and mustering in an industry that, outside the larger players, is fragmented.
TheSPECtacle – obviously foregoing any finder’s fee – might be inclined to suggest Paladin lock a target on COMMAND HOLDINGS, which currently seems to be engaged in a skirmish with majority shareholder Cape Empowerment. Perhaps Paladin, coming in as a resourceful equity partner, could even broker a very profitable peace between Command and CAP – which we should remember also has its own fast-growing security operations.