The recent strength of the Distell share price is explained by the bombshell this afternoon that the Public Investment Corporation has bought 11% of Capevin Holdings whose only asset is boxes of Marie Biscuits for board meetings and a stake in Distell, the largest SA wine producer.
Quite why the government is investing in booze is a mystery given the campaign against the demon drink by the Department of Health and a sensitivity to the stuff among Moslem voters. Heck, Jacob Zuma is teetotal and the rest of the ANC drink imported French Champagne and Scotch. Still judging by the share price movement there was inside trading galore and the PIC paid top dollar for their stake. Good luck!
As the PIC logo puts it “committed to serving our clients” to which may be added “Klippies and Coke”.