Canal Square has sold 8.3 million Faritec shares on the open market to increase its interests in the motor dealership market.
The investment company is one of Faritec's black economic empowerment shareholders.
Faritec executive director and Canal Square shareholder Mncedisi Mayekiso says there is no reason for investors to be concerned.
"This is simply a case of spreading our interests. Canal Square is not pulling out of Faritec; instead, it is just trying to diversify its portfolio. The company - through myself and Mzwandile Nomkonwana - still retains a shareholding in Faritec to the tune of about 6.7 million shares. This is about 2.7% of Faritec's issued share capital," he explains.
Meanwhile, a Faritec statement says it is proud to have empowered Canal Square and given it the potential to further invest in other business ventures.
Following a week of small losses on the market, Faritec's share price yesterday recovered 2%, to close at R1.54.
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