Podcast: Owning unlisted shares

Simon BrownJSE Direct, Latest

Simon Shares

  • Another week, another vaccine. This time from Moderna and also using the Messenger RNA as does the Pfizer / BioNTech vaccine.
  • Stor-Age* (JSE code: SSS) results very solid.
  • Wilson Bayly Holmes (JSE code: WBO) results not great as Australia hurts, again.
  • Raubex (JSE code: RBX) announces an R2.87billion contract win from Sanral.
  • Strong Spar (JSE code: SPP) results.
  • Boeing 737 MAX 8 returns to skies as FAA lifts grounding order.
  • Brait (JSE code: BAT) net asset value 771c (based on 9x EV/EBITDA), share price 388c.


Brait monthly chart

Brait monthly chart

* I hold ungeared positions.

Upcoming events;

Owning unlisted shares

In the last few years, we’ve seen a bunch of stocks being delisted from the JSE and in pretty much all cases existing shareholders get paid out and no longer hold the stock.

Anchor (JSE code; ACG) are now proposing a delisting at 425c, but with an option to remain invested in an unlisted Anchor.

I have never held an unlisted share outside of companies I have founded or worked for a few simple reasons;

  • No JSE oversight
  • Lack of communications to minority shareholders
  • Majority shareholders acting as if it is their private company
  • Zero liquidity to buy and sell
  • Zero price discovery
  • In short, being screwed over.

That said Anchor will very much still be in the public eye and this is not usually the case when a stock delists. That will help act as a guard rail (not that they need it) so maybe it will be fairer to minority shareholders.

Certainly, I think the 425c offering is very cheeky and I still don’t want to hold unlisted stocks, for many this time may be the exception.

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JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

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