{"id":345,"date":"2022-02-07T02:00:00","date_gmt":"2022-02-07T02:00:00","guid":{"rendered":"https:\/\/bluegemresearch.co.za\/?p=345"},"modified":"2022-02-06T09:19:23","modified_gmt":"2022-02-06T09:19:23","slug":"sabvest-capital-new-investments-strong-trading-update","status":"publish","type":"post","link":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/?p=345","title":{"rendered":"Sabvest Capital &#8211; New Investments &#038; Strong Trading Update"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Share Code: SBP &#8211; Market Cap: R2.4bn &#8211; Dividend Yield: 0.6%<\/strong><\/p>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-f9be30d3-d7e4-4136-b736-ca0e2cc9c9a0\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2022\/02\/Sabvest-Capital_Results-Note_Ad-Hoc-Note_7-February-2022.pdf\">Sabvest Capital &#8211; Ad Hoc Note &#8211; 7 February 2022<\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2022\/02\/Sabvest-Capital_Results-Note_Ad-Hoc-Note_7-February-2022.pdf\" class=\"wp-block-file__button\" download aria-describedby=\"wp-block-file--media-f9be30d3-d7e4-4136-b736-ca0e2cc9c9a0\">Download<\/a><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>New Investment: ARB Holdings Ltd<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Masimong Electrical (49.9%-held by Sabvest &amp; 50.1% by <a href=\"https:\/\/masimong.com\/\">Masimong<\/a>) has offered minority shareholders in <a href=\"https:\/\/www.arbhold.co.za\/\">ARB Holdings<\/a> 800cps. Along with the Burke Family (62.9%-shareholding in ARB), the deal aims to take the electrical &amp; lighting wholesaler private. The total consideration will be c.R697m, &amp; Masimong and Sabvest have each committed R223.5m funding (Sabvest\u2019s share is c.9.3% of its market cap &amp; c.6.5% of published NAV).<\/li><li>Irrevocable undertakings to vote in favour of the deal have been received from 69.4% of eligible shareholders, thus, we believe that this deal\u2019s successful outcome is quite likely.<\/li><li>Refer to our <a href=\"https:\/\/v5j22kvl0zh.c.updraftclone.com\/?cat=50\">notes on ARB Holdings<\/a> for detail on the Group.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>New Investment: Apex Acquires Ascendis Medical<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Sabvest\u2019s 44.8%-held investment, <a href=\"https:\/\/www.apexpartners.co.za\/\">Apex Partners<\/a>, has acquired a stable of <a href=\"https:\/\/ascendishealth.com\/\">Ascendis Health<\/a> medical devices businesses for R550m (less c.R200m catch-up capex &amp; up to R25m excess rental). See the <a href=\"https:\/\/ascendishealth.com\/wp-content\/uploads\/2022\/02\/Recap-Plan-Announcement-1-February-2022-final.pdf\">full announcement here<\/a>.<\/li><li>Ascendis Medical\u2019s FY 21 revenue was R983m but bottom-line expectations vary given Ascendis\u2019 neglect of the businesses.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Trading Update: Growth in NAV Better than Expected<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Sabvest expects its FY 21 Net Asset Value (NAV) to be <em>more<\/em> than +19%y\/y (&gt;8858cps) while also hiking its dividend &gt;80%.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Valuation*, 12m TP* &amp; Implied Return*: Awaiting FY 21 Results<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>We have left our fair value (6826cps*) &amp; 12m TP (8000cps*) unchanged &amp; will update these after the FY 21 results. Given the trading update, though, we expect to upgrade our views.<\/li><li>While we do not expect ARB Holdings to materially change Sabvest\u2019s NAV in the short-term, in the long-term the Group is an excellent, cash-generative &amp; well-positioned business that is likely to contribute positively to NAV growth. Likewise with Ascendis Medical\u2019s optionality. Perhaps, more subtly, these new investments further entrench Sabvest as a <em>unique<\/em> listed entry-point into a portfolio of <em>un<\/em>listed companies.<\/li><li>See <a href=\"https:\/\/v5j22kvl0zh.c.updraftclone.com\/?p=301\">H1:21 Results Note<\/a> &amp; our <a href=\"https:\/\/v5j22kvl0zh.c.updraftclone.com\/?p=273\">Initiation<\/a> for more background.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><em>* Under review until post-FY 21 results<\/em><\/p>\n\n\n\n<div class=\"wp-block-file\"><a id=\"wp-block-file--media-02c173dd-5a5c-49a8-958c-a2212eec8fa6\" href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2022\/02\/Sabvest-Capital_Results-Note_Ad-Hoc-Note_7-February-2022.pdf\">Sabvest Capital &#8211; Ad Hoc Note &#8211; 7 February 2022<\/a><a href=\"http:\/\/v5j22kvl0zh.c.updraftclone.com\/wp-content\/uploads\/2022\/02\/Sabvest-Capital_Results-Note_Ad-Hoc-Note_7-February-2022.pdf\" class=\"wp-block-file__button\" download aria-describedby=\"wp-block-file--media-02c173dd-5a5c-49a8-958c-a2212eec8fa6\">Download<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Share Code: SBP &#8211; Market Cap: R2.4bn &#8211; Dividend Yield: 0.6% New Investment: ARB Holdings Ltd Masimong Electrical (49.9%-held by Sabvest &amp; 50.1% by Masimong) has offered minority shareholders in ARB Holdings 800cps. Along with the Burke Family (62.9%-shareholding in ARB), the deal aims to take the electrical &amp; lighting wholesaler private. The total consideration [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[117],"tags":[51,13,120,15,137,60,118,136,20,30,16],"class_list":["post-345","post","type-post","status-publish","format-standard","hentry","category-sabvest_capital","tag-arb-holdings","tag-equity-research","tag-holdco","tag-jse","tag-nav","tag-research","tag-sabvest","tag-sbp","tag-small-cap","tag-small-caps","tag-south-africa"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/345","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=345"}],"version-history":[{"count":1,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/345\/revisions"}],"predecessor-version":[{"id":347,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=\/wp\/v2\/posts\/345\/revisions\/347"}],"wp:attachment":[{"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=345"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/v5j22kvl0zh.c.updraftclone.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}