- Absa has released an update covering the five months to May 2021, along with a formal JSE trading statement for the six months ended June 2022. There are many insights in here about the banking sector, which has seen prices come off recently. The sector has still been a strong performer this year, though there are cracks starting to show in credit quality of consumers. Find out more in this feature article.
- Brait has released its financials for the year ended March 2022. They make for great reading, especially as the underlying portfolio is so diverse. Premier put in an excellent performance, raising even more questions about a competitor like Tiger Brands. Virgin Active is also a big part of the business though, with the gyms needing a proper recovery after the horrors of the pandemic. To get a solid overview of Brait, read this feature article.
- In an update linked to Brait, Ethos Capital released a voluntary update. This vehicle offers shareholders a way to invest indirectly into funds or co-investments that are actively managed by Ethos Private Equity (including Brait). The net asset value increased just 1% over this quarter and is up 11% since June 2021. The unlisted portfolio is doing better than Brait, with a valuation increase of 13% this year. Ethos Capital’s net asset value per share at the current Brait share price is R8.17 and the Ethos share price is R5.63, so there are layers of discounts here.
- Blue Label Telecoms released a short update on the recapitalisation of Cell C. There are numerous steps that need to take place with important legal procedures along the way. Much like every Home Owners’ Association meeting I’ve ever attended in my complex, the meeting of Noteholders held on 20 June failed to achieve a quorum. It has been reconvened for 5th July, in case you are following this closely and want to make a note.
- Executives of Raubex have been buying up the shares recently. The company has now released a firm intention announcement to acquire all the shares in Bauba Resources. Regulator readers will know that Raubex has just concluded a mandatory offer to shareholders in Bauba, resulting in Raubex holding 61.68% in the company. The offer price is R0.42, which is identical to the mandatory offer price. Raubex wants to buy the company, yet the announcement waxes lyrical about all the risks facing Bauba and the significant losses it incurred recently. If at least 90% of eligible holders accept the offer, then Raubex can implement a compulsory acquisition under s124 of the Companies Act for the remaining shares. As three holders have 96.59% of the shares in Bauba, there is almost no liquidity whatsoever in the stock, so Raubex is suggesting that this is last chance saloon for investors who want to exit. A circular will be issued in due course.
- Novus Holdings released a cautionary announcement that raised a few eyebrows, noting that it had entered into negotiations regarding a potential acquisition.
- Schroder European Real Estate Investment Trust has released results for the six months ended March 2022. It hasn’t exactly been a great two years, with a net asset value (NAV) total return of -0.4% in FY21 and +5.5% in FY22. The loan to value ratio is 28% gross of cash or 18% net of cash. In good news, 100% of leases benefit from inflation-linked rent reviews. An interim dividend of 6.6 euro cents per share has been declared, of which 4.75 euro cents is a special dividend related to the successful execution of the Paris, Boulogne-Billancourt business plan.
- Conduit Capital has been in the process of raising R500 million in redeemable, convertible, participating preference shares. This is a fancy instrument that gives an investor numerous rights that ordinary shareholders don’t enjoy. The capital was to be raised from the Mmuso Consortium for the purposes of capitalising the insurance business in Conduit for growth. The consortium didn’t fulfil certain conditions in the term sheet and so the proposed transaction has lapsed. Conduit reassured the market that it is in “advanced negotiations with alternative investors” to recapitalise the insurance business, so the company is trading under a cautionary announcement until further details can be announced.
- Labat Africa decided that there’s no PR quite like free PR, releasing a SENS announcement with a headline that reminded me of those terrible article suggestions you see at the bottom of really clickbaity news websites. Long story short: a clinical trial is underway locally for the use of cannabis in treating chronic pain. The next strain to be used in the study is called “9 Pound Hammer” which is what it feels like Labat Africa hit me with when a SENS announcement that included an exclamation mark in the headline was released.
- Associates of the Company Secretary of Stor-Age have bought shares in the fund worth over R856k.
