Zeder ticks up on review of PSG management fees
Johannesburg – Zeder Investments, an investor in agricultural companies, rose to the highest in three months in Johannesburg trading after saying the management and administrative fees it pays to PSG Group are under review.
The stock rose as much as 5.5% to the highest since January 5 on an intraday basis before paring gains to 4.3% at R6.03 as of 15:53. The volume of shares traded was 1.7 million, 73% of the daily average in the past three months.
PSG Group is investigating alternatives to the current management fee agreement, Zeder, based in Stellenbosch near Cape Town, said in a statement Monday as it reported earnings.
“This renegotiating will likely lead to the fee being cut which will lead to less costs, more dividends, more investment income and therefore an improved share price,” Anthony Clark, an analyst at Johannesburg-based Vunani Private Clients who has a sell rating on the stock, said Wednesday by phone.
Source:Fin24
