JPM | EMEA Spec Sits Daily: OCI NA news, INVP LN/INL SJ note on DLC, MKC US note

Research evidence excerpt

JPM | EMEA Spec Sits Daily: OCI NA news, INVP LN/INL SJ note on DLC, MKC US note

Specialist Sales J P M O R G A N

26 June 2026

• n/a

JPM Research

• Investec Plc - DLC structure is a legacy enabler now presenting simplification opportunity - Baron Nkomo here

• Investec operates a Dual Listed Companies (DLC) structure (Investec Limited in South Africa and Investec plc in the UK)

which was formed in 2001. The structure is designed to make the two listed parents function as a single economic

enterprise with equivalent shareholder rights (dividends, capital and voting) via contractual agreements, equalisation/

matching mechanisms and special voting arrangements. In theory, the core benefits are strategic and regulatory: it

preserves a South African ‘national identity’ and oversight framework while enabling a UK primary listing and access to

global capital pools. The main disadvantages are complexity and ‘investor segmentation’: two legal entities, two

regulatory regimes, ring-fenced creditors and non‑fungible capital/liquidity can all contribute to a valuation discount and

friction in capital allocation. Currently, c.52% of group capital is allocated to the UK, which also makes up c.49% of

group earnings, with the balance in SA. While the DLC was historically beneficial in establishing Investec’s international

footprint and satisfying South African regulatory objectives, we feel that the investment case today is hindered by this

structure to some extent. We believe that ending the DLC could be value-accretive if Investec can do so without

impairing regulatory standing, client confidence, or funding/capital resilience; however, the unwind is non-trivial

and would require careful sequencing, approvals and meaningful one-off costs.