Investment holding company Gaia Infrastructure Holdings has decided to bring the management of its portfolio, valued at about R500m, in-house, which will results in cost savings.
The group will spend R18m terminating its 2015 agreement with its external management company (manco), saying on Thursday that the move should better align the new management team’s interests with those of shareholders.
The termination of the manco agreement is still subject to shareholder approval. Under the current agreement, the manco receives an annual management fee of 0.8% on enterprise value, payable quarterly.
It also receives a transaction fee of 1% on acquisition costs and disposal proceeds.