Corpcapital share loses 37% after going ex-dividend.

Posted On Tuesday, 28 January 2003 10:01 Published by eProp Commercial Property News
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Cape Town - The share price of niche financial services group Corpcapital, which has had its corporate governance questioned by former non-executive director Nic Frangos.

Property-Housing-ResidentialShareholders registered last Friday can look forward to the payout of a special distribution of 52.5c a share.

The company made a special payment because it had closed its banking operations after the crisis in the small banking sector last year.

The payout was in addition to an annual dividend of 12.5c a share paid out in December.

Yesterday Corpcapital announced the
appointment of Nigel Payne to conduct an independent investigation into the allegations arising from Frangos's letter of resignation on December 2.

Payne's appointment came after Corpcapital's major institutional shareholder - Old Mutual Asset Managers, which has a 16 percent stake in Corpcapital - suggested an investigation by an independent third party was necessary because Frangos's allegations and the views of the rest of the Corpcapital board on the allegations were so far apart.

Corpcapital's board said Payne would have unrestricted access to all company records, directors and employees.

He would also engage with Frangos.

The outcome of Payne's investigations would be published.

Payne, a former partner of KPMG, is a member of the King committee on corporate governance, a director of the JSE Securities Exchange and the chairman of its risk committee. He represents South Africa on the International Board of Governors of the Institute of Internal Auditors.

In the last financial year to August, Corpcapital's headline earnings came to 56.9c a share.

The share price gives a relatively high dividend yield of over 13 percent, but the forward price:earnings ratio is likely to be close to 1, which means negative sentiment has downrated the share price substantially.

Last modified on Tuesday, 06 May 2014 13:43

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