NICOLE MORDANT, Johannesburgi | Thursday 1.25pm
SHARES in the New Africa Investments Ltd (Nail) stable fell for the second day in a row on Thursday as investors remained wary about the prospects of the black empowerment firm after it announced a major restructuring.
Although analysts broadly praised Nail’s stated strategy to become a focused financial services company around Metropolitan Life, a lack of detail on how it would achieve this had created uncertainty.
Some said sentiment still remains negative on the company after its controversial decision to enrich four directors by R130-million worth of share options. ”Nail has made the right move by planning to restructure, but sentiment remains negative after the share options debacle,” said a local trader. ”There is lack of institutional support at the moment, the market is waiting to see if they will produce the figures that they are talking about.”
By 10.30am, Nail shares were down 6,58% or 25 cents to 355 cents. Financial services subsidiary Theta slumped 6,32% or 100 cents to R16,30. AMB lost 6,12% or 150 cents to R23. Shares in Metropolitan Life, which Nail aims to make the core of its operations, were off 0,55% or five cents at 900 cents, with 54300 shares changing hands.
On Tuesday, Nail unveiled a restructuring plan aimed at restoring shareholder confidence after a boardroom row over the share option scheme which resulted in the resignation of two founding directors.
In terms of the revamp plan, Nail would regroup and separate its media operations from its financial services assets within 12 months. — Reuters