- FirstRand released a trading statement for the year ending June 2022 which gives the bare minimum disclosure: earnings will be at least 20% higher than the prior period. There’s a lot of attention on the banks at the moment, which is why I wrote a feature article on the drivers of banking earnings this year.
- The Takeover Regulation Panel (TRP) has issued a really important ruling on the Tongaat Hulett situation, in which Magister Investments would’ve obtained a large stake in the company by underwriting a rather desperate rights offer. After a complaint by the Artemis consortium, the TRP investigated and found that certain third party share transactions rendered the waiver of the mandatory offer a nullity. In English, this means that Magister’s exemption from making a mandatory offer if it goes above a 35% shareholding has fallen away, so the company would need to be in a position to acquire the entire company rather than just a significant minority holding. Importantly, nobody at Tongaat Hulett has been implicated in this. It is simply a technical legal matter. The effect is significant though, as this waiver was a condition precedent to the Magister deal. The reality is that Tongaat needs to raise money to fix the balance sheet. If it isn’t going to come from Magister, they need to find an alternative very quickly.
- Heriot REIT has announced a firm intention to make a general offer to Safari Investments RSA shareholders. This has been a long time coming (and Heriot even cleared this with the Competition Commission earlier this year), as Heriot and its concert parties (including Reya Gold Investments) already held 33.1% in Safari. A general offer will be made to Safari shareholders at R5.60 per share. Heriot also notes that it won’t support any move by Safari to make acquisitions or issue new shares, as Safari is trading at a significant discount to net asset value. This may sound like corporate bullying to get shareholders to accept the offer, but it does make sense. Safari’s share price increased by 7.3% on Friday as the share traded up to the offer price and the arbitrage trade closed (otherwise people would just buy the shares at a lower price and accept the offer to lock in a risk-free profit, known as an arbitrage). Safari’s net asset value per share at the end of September 2021 was R8.21.
- Alphamin’s share price closed nearly 4.8% higher on Friday after announcing a 46% increase in the Mpama South inferred mineral resource estimate. The existing development of that resource will increase Alphamin’s tin production to around 6.6% of the global total, from the current level of 4%. With the latest announcement, the long-term prospects of the site are even more interesting than previously thought.
- There’s been more insider buying at Raubex, with the construction group closing slightly higher on Friday and down around 2.5% this year.
- Many companies and business leaders have expressed sadness at the passing of Meyer Kahn, a distinguished executive who served on numerous listed company boards, including as group managing director of SABMiller. He co-founded Afrocentric Investment Corporation in 2006. Interestingly, Kahn served as CEO of the South African Police Service from 1997 to 1999.
- In a very impressive show of support from shareholders, the proposed Purple Group share incentive plan received 99.91% approval. This is particularly good when you consider that many companies are currently struggling to get strong approval for remuneration by shareholders.
- The relationship between Oceana Group and its previous CFO Hajra Karrim has come to an end. Karrim was suspended on a precautionary basis pending a further process. The contract of employment has now been terminated based on findings of gross misconduct against Karrim. The share price has shrugged off the executive turmoil and auditor resignation this year, down just 2.8% in 2022.
- Allan Gray has acquired more shares in Tiger Brands, taking the holding above the 10% threshold. They clearly see something in the company that I don’t. Allan Gray has also sold down its stake in Nedbank and fallen below the 10% threshold, a decision that I also don’t particularly understand.
- An independent non-executive director of AngloGold has bought shares in the company worth just over $51,000.
- An independent non-executive director of Stefanutti Stocks has bought shares in the company worth R467,500 – a significant show of faith in a business that is facing tough times.
