Star 2021-08-03

Absa PMI plunges to a 14-month low but is expected to rebound Siphelele Dludla siphelele.dludla@inl.co.za INDUSTRIAL activity in the South African manufacturing sector is expected to rebound to a respectable level this month after plunging to a shocking 14-month low in July. The Absa Purchasing Manufacturers Index (PMI) fell sharply to 43.5 index points in July, from 57.4 points in June, weighed down by the lockdown restrictions and civil unrest. This PMI reading below 50 index points was down to the lowest level since May 2020. This was a setback to manufacturing output recovery at the start of the third quarter of 2021. It also signalled the steepest deterioration in business conditions since the beginning of the lockdown. Absa said that July was a particularly challenging month, with the broader…

Huge Group’s offer pulls shareholders holding only 1.9% of Adapt IT EDWARD WEST edward.west@inl.co.za ADAPT IT shareholders holding a paltry 1.9 percent of the company’s shares have accepted telecoms company Huge Group’s share swop offer to acquire 100 percent of the software and services company. The low acceptance of the Huge offer followed the majority passing of a resolution last month at the Adapt IT general meeting to accept a counter offer by Canada-based Volaris Group, which had upped its initial cash offer to acquire Adapt IT from R6.50 to R7 per share. In light of the tussle to woo Adapt IT shareholders, Huge Group over the course of its seven-month campaign for the acquisition also improved an earlier share swop offer from 0.9 Huge shares per Adapt…

EDWARD WEST edward.west@inl.co.za VEHICLE export sales plunged 33.1 percent, while the motor industry lost well over R3 billion because of the damage to assets and property, lost sales orders, and the cancellation of new developments, National Association of Automobile Manufacturers of South Africa chief executive Mike Mabasa said yesterday. July export sales recorded a huge decline of 8 381 units to 16 931 units, compared to the 25 312 vehicles exported in July last year, vehicle sales statistics released yesterday showed. Domestic vehicle sales in July, at 32 949 units, reflected a modest 1.7 percent increase from 32 405 sold in July last year. July’s new vehicle sales reflected economic disruptions caused by the unrest in KwaZulu-Natal and Gauteng, the cyberattack on…

Eskom warns of Medupi power delay Siphelele Dludla siphelele.dludla@inl.co.za ESKOM has warned that it will take another 24 months and an additional R13 billion for the Medupi power station to deliver electricity to the national grid at full capacity, at a time when the economy is fragile. This could put a damper on the expected economic recovery as the ongoing energy crisis could see Eskom continue failing to meet the country’s electricity demand, leading to muted industrial activity. The SA Reserve Bank last month took a cautious stance and maintained its 4.2 percent gross domestic product outlook for 2021 as recent supply disruptions and protracted lockdown could result in downward risks to economic growth. The struggling power utility yesterday announced that its flagship Medupi in Limpopo has been…

Mango’s fate hangs in balance as unions, management face off Banele Ginindza banele.ginindza@inl.co.za THE CASE of whether faltering airline Mango, a subsidiary of South African Airways (SAA), will go into business rescue or face liquidation comes before the South Gauteng High Court today, following the filing of an urgent application from organisations seeking to have the low-cost carrier placed in business rescue as opposed to management’s desire to have the entity liquidated. The Mango Pilots Association, the South African Cabin Crew Association and the National Union of Metalworkers of SA (Numsa) have approached the court to rescind liquidation proceedings and are seeking to have Ralph Lutchman appointed as the business rescue practitioner. The organisations have said the failure by the Department of Public Enterprises (DPE) to provide funding has placed…

Fairvest board proposes acquisition of New Star rather than renewing lease EDWARD WEST edward.west@inl.co.za FAIRVEST Property Holdings, which plans a share swop merger with Arrowhead Properties, has proposed the acquisition of its outsourced management company New Star Asset Management for R133 million, rather than renewing the term for five years. The 10-year agreement between Fairvest and New Star was approved in 2011 and expires on November 30, 2021, but it could be renewed for a further five years, subject to shareholder approval. Renewing the lease, however, would not be fair to shareholders, according to an appraisal by professional services firm Mazars Corporate Finance. If the asset management agreement was not renewed, Fairvest would become obliged to acquire the business conducted by the asset manager. Fairvest said in a statement yesterday…