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Sabcap undertakes new deal

Feb. 29, 2024
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Anthony Clark
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Anthony Clark

Investment Holding company Sabvest Capital (Sabcap) has bought a 19% stake in Halewood South Africa

Sabcap is a JSE listed investment holding company founded, majority owned and run by seasoned businessman & entrepreneur Christopher Seabrooke.

Its current share price is R72.00 with a R2,8bn market value and a Net Asset Value (as of December 2021 final results) of R93.71 a share. The current discount is 23%

Sabcap is simply a JSE-listed family wealth office managing mostly Seabrooke's money. You as an investor get an opportunity to buy shares in his listed vehicle which gains you access to a portfolio of established assets mostly in the small-to-mid cap listed space both on the JSE and internationally.

This is an unique vehicle on the JSE. The stock has an excellent 10-year plus track record and you can look as Sabcap as a private equity vehicle allowing outsiders to own some excellent assets that they would ordinarily never gain exposure too.

Recently Sabcap undertook its latest acquisition buying with partners the South African liquor interests of UK-based Halewood International. They took a near 19% stake and paid R170 million. This is an excellent deal. Seabrooke is an extraordinary capital allocator and Halweood joins a 21% stake in ARB Holdings, the electrical and cabling business they de-listed some months ago.

Sabcap is now fully invested and interim results to June 2022 are ahead. I forecast NAV to rise to near R100 and have a R110 (minimum) for year end 2022.

Despite Sabcap having risen 22% year to date and the stock bring off its recent 52-week high of R77.90, I recommend the stock as a cornerstone of any long-term growth investment portfolio that wishes exposure to the unlisted small-to-mid cap space.

I enclose my recent note on Sabcap & Halewood in this Google link 

https://drive.google.com/file/d/1ojhoVGgnmdmZaSYFUOIAYR5p5f7HHP0i/view?usp=sharing

 

 

 

 

 

 

 

 


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