Africa-based fund manager Coronation Asset Management has become the second largest investor in SPAR, a Dutch retailer listed on the Johannesburg Stock Exchange and active in several African countries. Coronation now owns 16% of the company's capital, up from 4.8% previously.

The amount of the transaction was not disclosed, but market data suggests that the fund manager acquired nearly 16.6 million shares of SPAR. No information is given on whether the shares were all purchased in a single day but SPAR’s share price has risen since this news was announced on February 28, 2020.

SPAR also appears to be a solid investment given that the company operates in the food distribution segment, which under normal circumstances is a stable market. The retailer is present in Africa in markets such as South Africa and Nigeria.

It is the third largest company listed on the South African financial market. Its net profit margin based on its results for the 9 months ending September 2019 is currently 1.98%; a high level for a sector where margins are low.

Idriss Linge