Picture: Contract. (Wikipedia).
JOHANNESBURG - Diversified investment holding company Stellar Capital Partners said yesterday that it had sold its subsidiary, Cadiz Asset Management, to Warwick for an undisclosed amount.

The company said it would not make the terms of the transaction public as the disposal fell below the threshold of the disclosure categorisation in terms of the JSE listings requirements.

Stellar Capital, however, said the disposal remained subject to securing all necessary regulatory approvals.

Chief executive Peter van Zyl said the group had recently reviewed its future strategic direction and focus.

Van Zyl said Stellar Group had been looking for the right strategic partner for Cadiz. “The sale of Cadiz Asset Management to Warwick represents a very positive and important step for the future of Cadiz,” Van Zyl said.

Recently, Stellar Capital also took a strategic decision to exit the investment in Integrated Equipment Rentals.

However, it is still invested in Torre, Tellumat, Prescient, Praxis, Greenpoint Capital, previously Stellar Credit, and Amecor.

Assets

In the six months to the end of December, Cadiz reported a marginal increase in assets under management to R7.3billion, up from R7bn recorded during the corresponding period last year.

Van Zyl said Cadiz had earned a reputation for the development of innovative structured financial products, hedge funds and money market fund excellence in the past 20 years.

He said: “In Warwick, we have found the ideal partner to take the Cadiz business forward and to share in its future success. We are confident that the synergies between the two businesses will be maximised and that the deal will be particularly beneficial for clients,” he said. Stellar Capital indicated during its half-year results in March that it wanted to continue with the strategic review of its current investments.

The group said that the review would determine the long-term approach to improving shareholder returns and efficient allocation of capital.

Warwick chief executive Ian Kilbride said they were delighted with the deal.

“The deal will add value to Warwick in three respects. It will add further quality asset management professionals with a successful and proven track record to our team, the Cadiz suite of funds will add to our existing suite and portfolio offering and, lastly, the acquisition will take Warwick into the retail and institutional asset management space,” Kilbride said.

Stellar Capital shares closed unchanged at 64cents on the JSE yesterday.

- BUSINESS REPORT ONLINE