JSE Delistings to Surge

Shrinking Bourse: The Bulk of These Will Be Smaller Entities

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The JSE will see a fresh wave of company delistings in the coming months, with a number of shares departing the bourse. The bulk of these are smaller entities that have limited free float and often little to no trades daily. African Rainbow Capital, the first in the current wave, delisted in May.

Trencor will delist on 22 July, following the approval from shareholders to wind up the company and liquidate it.

It has been listed on the JSE for 70 years, delivering what it termed "super-long-term returns" when celebrating its 75th birthday in 2005.

By that point 2005 an investment of R1 000 in Trencor in 1955 would've been worth R4.4 million.

Over time, Trencor built up a sizeable stake in Textainer, one of the world's biggest shipping container leasing groups.

It unbundled these shares in two phases (2019 and 2020) and has been a cash company listed on the JSE, which "is in the process of distributing its available cash resources to shareholders".

At the end of December, it held R1.465 billion of cash but paid the bulk of this out as a special cash dividend of 730 cents a share in February. It will return the remaining cash in the form of special dividend this month.

AH Vest formerly African Heritage Investment Limited was established in 1988 and manufactures food sauces and condiments under its own brands (All Joy and Very Peri) as well as private label products for Shoprite, Pick n Pay and OK Foods.

In 2012, Eastern Trading (which is owned by the Darsot family) acquired a majority stake in AH Vest. Eastern Trading currently owns or controls 95.7% of AH Vest shares.