Two of Coronation Capital Property Investments' (Corovest's) businesses have been sold to members of their management as part of a restructuring programme at Coronation Holdings aimed at unlocking shareholder value.
Corovest, which falls under the Coronation Capital business division within Coronation Holdings, sold Pegasus III Properties and Pegasus Oil for undisclosed amounts.
"The reason for this move is so that we can focus more on our core activities of property asset and fund management both in SA and internationally," said Corovest director Michael Aitken on Monday.
"We wanted to get out of the risky property development work as part of the Coronation restructuring," he said.
Pegasus III Properties and Pegasus Oil were both involved in property development involving significant risk. Among Pegasus III's more high-profile projects was Fourways Crossing retail complex.
Aitken said that in the current economic cycle, these type of companies were under pressure.
The funds raised from the disposals would be ploughed back into the holdings group, as Aitken said the remaining businesses did not require capital. "These amounts are not significant, relative to our business," said Aitken, declining to reveal the value of the transactions.
There would be no further disposals by Corovest.
Meanwhile, Aitken said yesterday Corovest could remain on the JSE Securities Exchange SA as part of another listed entity, despite Coronation Holding's plans to delist the bulk of its business.
Coronation Holdings' restructuring programme would see Coronation Fund Managers remaining as the only listed entity of the group.
Business Day
Publisher: Business Day
Source: Business Day
