Exit stage left

Finweek English Edition - - COMPANIES & MARKETS -

Th­eS­PEC­ta­cle NOTES soon-to-be-sec­on­dar­ily listed pri­vate equity spe­cial­ist BLACK­STAR has the knack of ex­it­ing in­vest­ments very prof­itably. Finweek has pre­vi­ously recorded Black­star’s al­most R150m “turn” made on DCD-Dorbyl – a trans­ac­tion that net­ted a rather nifty re­turn on in­vest­ment of 2,8 times money over a 20-month hold­ing pe­riod.

Nat­u­rally, Th­eS­PEC­ta­cle’s beady eye has fallen on Black­star’s al­ready very prof­itable in­vest­ment in Litha Health­care – which not too long ago looked unin­spir­ing in its for­mer guise as Myr­iad Med­i­cal. While Black­star has al­ready made the easy money, Th­eS­PEC­ta­cle sus­pects there won’t be any im­me­di­ate plans to exit Litha – cer­tainly not while its promis­ing vac­cine plant in Cape Town is still com­ing on stream and there are op­por­tu­ni­ties for bolt-on ac­qui­si­tions.

Of course, in­vestor de­mand for qual­ity health­care coun­ters (and there are only a hand­ful of such listings on the JSE) could force Black­star to ap­ply its mind to an exit strat­egy sooner rather than later. As an exit for Black­star, un­bundling would be an ob­vi­ous op­tion; or per­haps plac­ing the shares with in­sti­tu­tional in­vestors.

How­ever, Th­eS­PEC­ta­cle reck­ons Litha might well slot com­fort­ably into the am­ple flanks of phar­ma­ceu­ti­cal gi­ant Ad­cock Ingram (which could use some in­spired cor­po­rate ac­tion to spur sen­ti­ment).

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.