Africa's Largest Asset Manager Sells 7.9 Million Stake In Jonathan Jawno-led Transaction Capital
- PIC reduces stake in Transaction Capital, cutting holdings from 9.96 to 1.96 after a tough year for the company.
- Transaction Capitals 2024 revenue drops 3, with a 5 decline in its South African business segment amid market struggles.
- PICs 7.9 million sale reflects cautious strategy amid economic pressures, challenging prospects for South African firms like Transaction Capital.
Africa's largest asset manager, the Public Investment Corporation PIC, has reduced its stake in Transaction Capital, a diversified financial services group led by South African businessman Jonathan Jawno. In a move announced on Feb. 4, 2025 , the PIC sold off 7.9 million worth of shares, slashing its holdings from 9.96 percent to just 1.96 percent.
This comes after a tough year for Transaction Capital, with the companys share price on the Johannesburg Stock Exchange JSE falling by 17 percent. As a result, its market capitalization has now dropped below 100 million, causing concern among investors about the company's future prospects.
PIC reduces stake amid weak performanceTransaction Capitals financial performance in 2024 highlighted the challenges the company is facing. Revenue dropped by 3 percent, from R3.14 billion 171.61 million to R3.05 billion 164.19 million, with its South African business segment seeing a 5 percent decline.
In response to these struggles, the Public Investment Corporation PIC sold off R147.25 million 7.93 million worth of shares, cutting its stake to 1.96 percent. The remaining value of its holdings is now about R35.97 million 1.93 million.
PIC adjusts strategy amid market strugglesFounded in 1911, the Public Investment Corporation PIC manages government workers' pensions and is the largest shareholder of Investec with a 15.5 percent stake valued at R5.88 billion 339.68 million.