Capitec plays down CEO’S sale of shares
Stassen ‘still major shareholder through investment company’
STELLENBOSCH-based Capitec has said its CEO, Riaan Stassen, remains the sixth-largest shareholder in the group following initial reports that he had sold almost all his shares in the group.
The bank said that, in real terms, Mr Stassen reduced his total portfolio by 14% in a move to “diversify” his investments.
“Riaan Stassen holds two blocks of shares, one in his own name and one in the name of his investment company, DSE Ventures. Only the shares in his name were highlighted in recent reports,” Capitec spokesman Charl Nel said. “While Stassen has sold shares mostly held in his own name over the past year, this remains a small portion of his total portfolio of shares.
He presently holds over 1.8million shares in Capitec Bank via his personal investment company and remains the sixth-largest shareholder.
A look at Capitec’s directors’ report from February 2002 to February this year shows that Mr Stassen always held most of his shares through a company rather than personally.
However, his holding has been fluctuating a lot since Capitec listed in 2002.
In 2002, Capitec’s directors’ report shows, Mr Stassen held 1.63% of the bank. In 2003 it rose to 3.5%, then 3.92% in 2004. His holding jumped to the highest yet in the year ended 2005, at 4.26%, and started shrinking in the following years. In 2006 it fell to 4.22%, then 3.05% in 2007 and 2.75% in 2008. In 2009 and 2010 it slightly increased to 2.94% and 2.95%, respectively.
In the years to end-February 2011 and 2012, it again shrank, to 2.47% and 2.20%, respectively.
Asked what led to these fluctuations Carl Fischer, executive of marketing and corporate affairs at Capitec, said it was a combination of issues such as rights offers, share options, the Capitec black economic empowerment deal, and selling to reduce the concentration risk.
Mr Fischer said some executives at Capitec had to raise funds to follow their rights when shares were issued, and a few years later they sold to replenish the funds they had raised and used for buying shares.
In the period between February and August, Mr Stassen cashed in more than R100m in shares personally and through his company. He has been selling at peak levels, averaging more than R200 a share. After cashing in, Mr Stassen now holds about 1.8% of Capitec, worth about R400m at yesterday’s closing price of R221.25, which is about R10 below the record high of R232 hit on April 20.
Asked if the reduction could be related to Mr Stassen mulling over retirement after serving the company since 2000, Mr Fischer said there was no talk at all of the group CEO stepping down. He said there were huge ambitions to take the company internationally in the future.