The Softline group's 60% held US subsidiary, SVI Holdings, listed on AMEX (The American Stock Exchange) last week, further strengthening the group's offshore status.
"We bought into SVI in October last year for about R150 million" says Softline CEO Ivan Epstein. "Today, 9 months later, our investment has appreciated by some 450% to over R680 million".
Until now, SVI has been listed on the NASDAQ Over the Counter : Bulletin Board (OTC:BB).
"AMEX is a more liquid market with significantly lower transaction costs than the OTC:BB, it is one of the primary US markets and although SVI is cash positive, the listing could also facilitate offshore fund-raising if and when required" says Epstein.
Based on SVI's recent results at end March 1998, Softline derives some 41% of its earnings from offshore which is expected to increase to over 50% in the near future, strengthening the stocks status as a Rand-hedge stock
In a recent transaction the group disposed of its interest in local training operation ISU Campus at a price substantially exceeding the original cost.
Epstein sees this "allowing management to further focus the group's efforts in its areas of core competency and to expand both locally and internationally".
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