whats the value of Vodacom?
Last night, we attended Investment holding company, Venfin’s annual results presentation for the year to June 2005 in Sandhurst. The group has done very well with almost all of its existing investments, but because of its 15% stake in Vodacom, the smaller ones don’t contribute meaningfully yet. Its net asset value is currently dominated by the 15% stake in Vodacom, a 25% stake in Alexander Forbes, the Dimension Data bond (USD 100 mln) and around ZAR 2.7 bln of cash, 72% of which is in Euros at the moment. The group has not changed its core investment strategy, but will perhaps become a little more aggressive in the future. Given the nature of their portfolio and its size, it is difficult to find meaningful contributors. For example, even if Venfin invests in 10 small companies (say less than ZAR 50 mln) that triple in value over say a year or two, this would not make a huge impact on the overall value. Venfin gave us a glimpse into Vodacom’s performance for the 3 months to June 2005. W
