The market value of the Mouton family’s joint stake in PSG Group has dropped by R628.5 million ($40 million) in the past 10 weeks, owing to a double-digit slump in the group’s share price as investors reduce their stakes in risky assets.
PSG Group is a South African investment holding company with positions in banking, education, financial services, and consumer goods.
The South African Mouton family owns 24.5 percent of the company, which includes stakes held by family members such as Petrus and Johannes Mouton, who serve as executives in the group.
As of press time on June 29, shares in the South African investment group were trading at R85.8 ($5.32) per share, unchanged from their opening price this morning, as both buying and selling pressures were evenly cleared out following a marginal decline in the group’s shares earlier this week.
The stock price of the Mouton-led group has fallen from R98.05 ($6.075) to R85.8 ($5.32) per share at the time of writing this report, representing a 12.5-percent loss for shareholders since April 21, nearly 10 weeks ago.
As a result of the price decline, the market value of the family’s 24.5-percent stake in PSG Group has dropped by R628.5 million ($40 million), from R5.03 billion ($312 million) on April 21 to R4.4 billion ($272 million) at the time of writing this report.
The recent decline in the family’s stake comes nearly 14 weeks after the Moutons announced plans to delist shares from the Johannesburg Stock Exchange as part of a move to deliver value to shareholders.
In response to the valuation disparity, CEO Petrus Johannes (Piet) Mouton stated that the group attempted to reduce the valuation spread by unbundling its stake in Capitec. The exercise, however, was not as effective as hoped, and the group continued to trade at a 30-percent discount.
He also claimed that too much red tape existed on South Africa’s primary stock exchange, impeding successful dealmaking.
In accordance with its delisting objectives, management also revealed plans to unbundle shares in its subsidiary firms, which include PSG Konsult, Curro, Kaap Agri, and CA&S, as well as a 25.1-percent investment in the tertiary education company, Stadio.
