I hope this doesn't happen - the co finally seems stable and as an investor I know how it all (the parts) works ....why complicate life. If London is expensive chop the costs but splitting up the business is madness.
not madness, no. The theory here is that you can separately list the entities. This makes good sense. A UK or US or other listed entity, with emerging market assets stuck in an environment of cyclical credit downgrades are always going to get rated differently. so by splitting it up - you unlock shareholder value, by allowing offshore business to trade independently of the SA business - and you maintain shareholding in both. So win-win in my opinion only, of course. Of course, what you have to watch out for - and campaign heavily against, is if they are selling off the offshore assets into a non-listed entity, and paying you out in a special dividend. that would just suck.
Thanks Skaaptjop - interesting. I think this needs to be digested further ....I wonder how much they have provided for in consultant fees and management "re-structuring" costs. Investec seem to manage a tricky dual-combo business quite well?
Liabilities attaching to products are not affected - unless like Malaysia airlines they close down the old company and leave a shell but now I am starting to talk rubbish. New brooms - well you have to justify your appointment don't you....?