Johannesburg - Sarhwu Investment Holdings (SIH), the investment arm of the South African Railway and Harbours Workers' Union (Sarhwu), had more than tripled its net asset value to R379 million and greatly simplified its balance sheet in a restructuring exercise, Sandile Zungu, the chief executive, said yesterday.
Zungu said SIH and Sanlam, the financial services company, had reached agreement that, from October 31, SIH had acquired Sanlam's interests in various special purposes vehicles for R217,5 million for an issue of shares in SIH.
The restructuring gave SIH unfettered ownership of substantial holdings in Mercantile Bank, MGX, Roadcorp, Aries, Greenwich, Spescom, Super Group and Rent-a Bakkie.
"We are positively and decisively reacting to the changes in capital market conditions that are affecting South African and world markets.
"Today's capital markets require, more than ever, simpler and more easily understood balance sheets. Through this restructuring we are achieving this," Zungu said.
He said although SIH had developed alternative means of raising capital, it would continue to use special purposes vehicles in the future as this had resulted in its net value growing from R2 million to R115 million in a year of turbulent times on the financial markets.
Zungu said SIH intended listing on the JSE early next year and was already involved in the process of choosing the best listing mechanism.
Sanlam Development Fund said it was proud to have "supported SIH since its inception, buying into and supporting the vision of one of the leading trade union investment companies".
Janine de Bruyn, a Sanlam development analyst, said: "The restructuring would enable SIH to go to the market next year, which would allow other investors the opportunity to benefit from an investment company with good company assets and with an outstanding management of proven worth."