Pick n Pay has released the circular setting out further details relating to the Boxer IPO (expected in the latter half of 2024) and the share capital reductions intended. Although the targeted amount to be raised from the listing is not finalised, the company expects to generate R8 billion in proceeds. The funds will be used to settle the Group’s outstanding debt and for considered re-investment to secure the turnaround of the Group’s Pick n Pay Supermarket business. In preparation for the IPO the group is in the process of undertaking an intra-group restructuring and as part of the restructure, a new company Boxer Retail Group has been incorporated and will serve as the listing vehicle of the Boxer business. Pick n Pay, through its wholly owned subsidiary Pick n Pay Retailers will retain an indirect minimum shareholding in Boxer Retail of at least 50% plus one share.
Some good news released by MC Mining this week is that it has secured potential investment of US$90 million to fund its Makado, Vele and the Greater Soutpansberg Projects. The investor, HKSE-listed Kinetic Development Group will invest via two tranches for a controlling 51% in the exploration, development and mining company. The initial tranche of 13.04% for an aggregate consideration of $12,97 million will see the issue of 62,1 million shares at an implied $0,21 cents per share (R3,72 per share). The second tranche is conditional on the fulfilment of a number of conditions precedent. Should this not occur, the investor has the right to request that MC Mining buy-back the shares issued for the first tranche.
In July Kore Potash announced it had conditionally raised c.US$1,28 million through the proposed issue of 91,802,637 new ordinary shares at a price of US$0.014 per share. 87,5 million shares were placed with new and existing shareholders. The placing of the remaining 4,3 million shares ($60,000) with the company’s existing chairman was conditional on shareholder approval. Shareholder approval has now been granted. The proceeds of the fundraise will be used to progress the Kola Potash Project.
Lighthouse Properties has, on the open market, disposed of an additional tranche of 224,093,712 Hammerson plc shares for an aggregate cash consideration of R1,45 billion.
Italtile will use cash reserves in excess of operational requirements to pay shareholders a special cash dividend of 78 cents per share.
PPC will use a portion of the cash received from the disposal of its 51% interest in CIMERWA in July to pay shareholders a special cash dividend of 33,5 cents per share amounting to R521 million.
Suspended since July 2022, Chrometco is to change its name to Sail Mining Group. The mining and exploration group is expected to trade under the new name from 23 October 2024.
Buka Investments (previously known as Imbalie Beauty which listed in 2007), has walked a troubled road, and the cancellation of its R140 million acquisition of Caralli Leather Works and Socrati Footwear from B&B Media and Moltera Group announced in July 2022 was the beginning of the end for the ‘house of brands’. As a cash shell, Buka Investments was required, within six months of classification, to enter into an agreement and acquire viable assets to satisfy the conditions for listing in terms of the JSE Listing requirements. Having failed to do so, its listing was suspended in February 2023. Since its suspension continued failure to comply with listing requirements will see Buka’s listing removed from the JSE on 4 September 2024. Shareholders will remain invested in an unlisted company.
Several companies announced the repurchase of shares:
In line with its share buyback programme announced in March, British American Tobacco this week repurchased a further 266,841 shares at an average price of £27.82 per share for an aggregate £7,42 million.
In terms of its US$5 million general share repurchase programme announced in March 2024, Tharisa has repurchased a further 27,191 ordinary shares on the JSE at an average price of R19.19 per share and 294,456 ordinary shares on the LSE at an average price of 81.63 pence. The shares were repurchased during the period 19 – 23 August 2024.
Prosus and Naspers continued with their open-ended share repurchase programmes. During the period 19 – 23 August 2024, a further 2,287,039 Prosus shares were repurchased for an aggregate €76,25 million and a further 198,299 Naspers shares for a total consideration of R728,65 million.
Five companies issued profit warnings this week: Putprop, African Rainbow Minerals, Insimbi Industrial, Murray & Roberts and Metrofile.
Five companies issued cautionary notices this week: Burstone, Chrometco, Salungano, Vunani and Sasfin.
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