South African Lender to Taxi Owners Plunges as It Forecasts Loss
- Transaction Capital bolsters bad-debt provisions for taxi unit
- Shares slump by more than 40%, most since its 2012 listing
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Transaction Capital Ltd. has found itself in the wrong place at the wrong time — financing minibus taxis amid rocketing fuel prices and a stagnant South African economy.
Shares in the financial services provider plunged by a record 41% in Johannesburg after it said earnings in its SA Taxi business hadn’t yet returned to pre-pandemic levels. It flagged that a first-half earnings per share loss was likely and said the industry remained under strain.