Washington H. Soul Pattinson and Company Ltd (ASX: SOL) shares are pushing higher on Tuesday after a new investment update caught attention.
At the time of writing, the Soul Patts share price is up 1.38% to $42.48.
The move adds to a solid year for the diversified investment house. Soul Patts shares are now up around 14% in 2026, although they remain down almost 4% over the past week.
The latest interest comes after reports that the company has built a substantial stake in Propel Funeral Partners Ltd (ASX: PFP).
Let’s take a closer look.
A new substantial stake
According to The Australian, Soul Patts has used a 30% fall in the Propel share price to build its position in the funeral services operator.
The report said Soul Patts now owns a 5.03% stake in Propel, equal to about 6.9 million shares, after a buy-in worth about $5.9 million.
The largest recent trade was a $2.5 million on-market purchase of 738,311 Propel shares.
The initial substantial holder notice shows Soul Patts became a substantial holder on 14 May 2026. It lists 6,944,482 ordinary shares and voting power of 5.03%.
Soul Patts already held 5,377,356 Propel shares before becoming a substantial holder. The notice shows it kept building the stake over March, April, and May, taking advantage of Propel’s weaker share price.
What Soul Patts may see in Propel
Propel is not a huge company, with a market capitalisation of about $468 million. But it sits in a sector that often attracts long-term interest.
The company provides death care services across Australia and New Zealand. Its brands include Ross Funerals, Alfred James Funerals, Berry Funeral Directors, Millingtons, and Gympie Funerals.
The Australian noted that Propel previously rejected multiple takeover proposals in 2023, when TPG Capital bought InvoCare for $1.8 billion.
Investors may be asking whether Soul Patts sees longer-term value after a rough period for Propel shares.
Propel shares are currently up 1.19% to $3.39. However, the stock is still down about 31% in 2026 and almost 30% over the past year.
A typical Soul Patts move
This looks like the sort of investment Soul Patts shareholders are used to seeing.
The company has a long history of backing listed businesses across different parts of the market. Its portfolio has included names such as Brickworks, New Hope Corporation Ltd (ASX: NHC), TPG Telecom Ltd (ASX: TPG), Apex Healthcare, and many more.
The Propel stake is not huge for a company the size of Soul Patts. But it is not hard to see why it has taken a look. Propel shares have fallen hard, and the business operates in a relatively defensive sector.
The post Soul Patts shares rise after taking stake in struggling ASX stock appeared first on The Motley Fool Australia.
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.