African Phoenix Investments said it expected its net asset value (NAV) an ordinary share to increase by between 68 and 78 percent for the year to end September. Photo: Supplied

DURBAN – JSE-listed investment holding company African Phoenix Investments said it expected its net asset value (NAV) an ordinary share to increase by between 68 and 78 percent for the year to end September. 

African Phoenix Investments said in a trading update yesterday that it has adopted NAV an ordinary share as its key reporting measurement for trading statement purposes in terms of the listings requirements of the JSE. 

The group’s NAV an ordinary share is expected to be between 87.50 cents a share and 92.70c during the period, up from 52c compared to last year. 

African Phoenix Investments was previously known as African Bank Investments, but changed the name in February 2017 after its divestment from the banking sector. 

In last year's results, the group reported a decline of 76 percent in profit after tax of R46 million, down from R186m compared to a prior year. 

However, it managed to increase cash and financial assets available for investment to R1.96 billion, up from R1.88bn. Last week African Phoenix Investments announced that it was considering a merger with new shareholder, financial services group Zarclear. In August Zarclear paid R245m to take a 22 percent stake in African Phoenix Investments.

Zarclear’s current portfolio consists of investments in Stenprop Limited, Peregrine Capital Hedge Funds and foreign cash balances. 

The respective boards of directors of Zarclear and African Phoenix have considered the capital base and structure, the cost base, the empowerment credentials and the strategic options of both companies and are of the view that there is a strong operational and capital markets rationale for the proposed merger. 

“A proposed merger will position the merged entity as an investment holding company that is able to execute on its strategies of private equity and market infrastructure investments,” the group said.

BUSINESS REPORT