Discovery news yesterday, someone, somewhere is buying shares from a strategic shareholder that is selling down their stake. At a discount to the prevailing market price. Standard Bank of course wouldn't say who, other than it was not Adrian Gore. It turns out that it was the refinancing of a BEE transaction, the strategic investor being the WDB. The WDB of course is the allocation of funds to women in rural areas of South Africa. As much as we like to think that we are all equal, it is true that rural woman in South Africa are amongst the most vulnerable in our society.
As per the WDB website, on their Discovery stake:
(A) 3.2% stake in this health and insurance business, alongside the Discovery Foundation (2.4%), a BEE staff Trust (0.9%), Vincent Maphai (0.2%) and Black Non-Exec's (0.1%). Through FirstRand Empowerment Trust ("FRET"), WDBIH has an additional 0.42% shareholding in this holding company was acquired by WDB post the FirstRand unbundling of its interest in Discovery Holdings.
It looks like a refinancing at a higher level. So there is no change in the shareholding, just refinancing by WDB as per the initial agreement, back in 2005. Keep calm and carry on.