Sassoon: Delisting part of strategic review

Sasfin Holdings Limited, a financial services group, has made headlines today with the announcement of an offer to minority shareholders of R30 per share. This offer represents a 65% premium to the 30-day Volume Weighted Average Price and is part of the proposed delisting of the group. The market reacted swiftly to this news, with shares surging by more than 45% in today's trade. To delve deeper into the specifics of this offer and the strategic direction of the firm, Michael Sassoon, CEO of Sasfin Holdings Limited, sat down for an exclusive interview with CNBC Africa. Sassoon shed light on the strategic reset that Sasfin initiated at the beginning of last year, focusing on exiting capital-intensive businesses that were not core to their strategy. The company has already made significant progress in this reset by divesting from specialised lending and foreign exchange businesses. They are also in the final stages of obtaining regulatory approvals for a transaction with African Bank, which will see them exiting commercial property and capital equipment finance businesses. This strategic overhaul aims to bolster Sasfin's core businesses, which are Capital Light, and simplify and streamline the group. The delisting of the group is viewed as a natural progression in this process. When questioned about potential pushbacks from regulators regarding the disposal of capital equipment finance and commercial property finance businesses, Sassoon expressed confidence in their engagements with regulators thus far. He mentioned that all interactions with regulators have been favorable, with no anticipated hurdles to the transactions. The offer made to existing minority shareholders, at a 65% premium, has garnered positive responses from shareholders who have engaged with the company. Sasfin's major shareholders, who collectively own close to 90% of the shares, are in support of the deal. Sassoon highlighted that the tight shareholding structure provides limited free float, making the offer an attractive opportunity for minority shareholders to exit at a significant premium or remain invested in a delisted vehicle aligned with the company's strategic reset. In terms of future growth plans and strategic initiatives, Sasfin Wealth has been a standout performer for the company in recent years. The institutional asset management business has seen notable growth, attributed to strategic investments and a strong management team. With the proposed transactions, the management team will have a stake in the business up to 15%, signaling a promising future for Sasfin Wealth. Looking ahead, Sasfin's roadmap includes finalizing the African Bank transaction in the coming weeks, followed by the delisting process that is expected to conclude by October, pending necessary approvals. Sassoon expressed optimism that by the beginning of the new year, the company will have a clearer perspective on their divestments and future strategic direction. The market response to Sasfin's delisting offer and strategic reset indicates investor confidence in the company's direction and potential for growth. As Sasfin continues to streamline its operations and focus on core business areas, the outlook remains positive for the financial services group.