Table of Contents
Key Points
- PIC reduces stake in Transaction Capital, cutting holdings from 9.96% to 1.96% after a tough year for the company.
- Transaction Capital’s 2024 revenue drops 3%, with a 5% decline in its South African business segment amid market struggles.
- PIC’s $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 company’s 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 performance
Transaction Capital’s 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 struggles
Founded 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).
As Africa’s largest asset manager, with R3 trillion ($173.27 billion) in assets, the latest move highlights the difficult environment facing South African companies, including Transaction Capital. Rising costs, regulatory pressures, and a slow economy are putting a strain on businesses.
The sale of shares by PIC represents a cautious approach to the challenges at hand. For Transaction Capital, the task of rebuilding investor trust and navigating these pressures will be essential in turning things around and regaining a positive market outlook.
