David Shapiro: Making sense of Adrian Gore's R1.4bn share transaction

In the latest episode of Rational Radio, South Africa's favourite market commentator David Shapiro unpacked the massive (and complex) put and call options entered into this week by Discovery founder and CEO Adrian Gore. The trades reported on the Stock Exchange News Service relate to Gore's decision to borrow money to contribute his share of Discovery's R5bn right issue that was conducted in 2015. The biggest individual shareholder with ownership of over 7% in the R73bn business, to retain this share of the business Gore put up his shares as security for the loan to follow his 2015 rights. As David Shapiro explains, the options are in place to protect the bank which lent him the cash. Also in this interview, David shares his perspectives on SA Airways and the similarities between Tongaat and Steinhoff. - Alec Hogg