Star 2021-09-07

Philippa Larkin philippa.larkin@inl.co.za ASCENDIS Health for the second consecutive trading day warned its shareholders not to pay attention to “unhelpful” market speculation in respect of a potential offer, which did not constitute a formal offer, while stating that there would be no value left to shareholders if the group recapitalisation failed and the firm ended up in an ensuing business rescue process. On Friday, the shares in the troubled health and wellness company plunged 10 percent after it debunked market speculation, saying a firm offer had not occurred. Yesterday, the company, which is fighting its way out of debt, informed shareholders that it had now become aware that a redacted copy of a letter addressed to the board of directors of Ascendis Health, containing details of a non-binding conditional…

Dineo Faku dineo.faku@inl.co.za STEINHOFF International Holdings took a 39 percent nosedive after the Western Cape High Court ruled that the liquidation hearing of the company could be heard. Justice Hayley Slingers dismissed the opinion that the court had no jurisdiction to wind up the respondent. “The point in time that this court does not have jurisdiction to limine (a limine is a motion, discussed outside the presence of the jury, to request that certain testimony be exclude) the respondent, being an external party, is dismissed with costs, which costs shall include the costs of two counsel and which shall be paid jointly and severally by the respondent, the first intervening party and the second intervening parties, the one paying to absolve the other,” said Justice Slingers. The ruling means…

‘The proposed settlement is in the best interests of its clients, given the alternative cost of litigation’ Dineo Faku dineo.faku@inl.co.za THE PUBLIC Investment Corporation (PIC), which manages assets worth more than R1 trillion on behalf of government employees, is backing the Steinhoff global settlement programme, it said yesterday. The PIC told the market that it had entered into a settlement agreement to support the implementation of the Steinhoff global settlement. Steinhoff International Holdings (SIHPL) is facing a tidal wave of litigation by shareholders who lost billions following the 2017 accounting scandal. “The PIC believes the proposed settlement is in the best interests of its clients, given the alternative cost of protracted litigation and related uncertainties, and the prospect of further diminishing share value. It attempts to provide certainty…

Philippa Larkin philippa.larkin@inl.co.za THE FNB/BER Consumer Confidence Index (CCI) recovered some lost ground to the third quarter of 2021, data showed yesterday, pointing to a level of resilience among consumers and consumer spending. The index came in at -10 index points, having slipped from -9 to -13 index points during the second quarter of 2021. This was despite violent protests and rampant looting that tore through KwaZulu-Natal and Gauteng during July points to a level of resilience among consumers, and by extension consumer spending, during the third quarter of 2021, the report said. “While the latest CCI reading of -10 remains well below the average CCI reading (of +2 since 1994) and, therefore, denotes depressed consumer confidence levels, it is nevertheless quite close to the reading of -9 recorded just…

Edward West edward.west@inl.co.za BIDVEST Group is hoping for another good financial year after it lifted the total dividend for the year to June 30 by 113 percent to 600 cents, chief executive Mpumi Madisa said yesterday. The group’s Services, Automotive, Commercial Products and Branded Products divisions delivered their best-ever performances, and headline earnings a share (Heps) was up 114 percent to 1 183.3c. Trading profit rose 48 percent to R8 billion. Normalised Heps was up 26 percent to 1 292c. Madisa said in a telephone interview that there were some factors which could boost prospects in the new financial year, including benefiting from the first full 12 months of operations of the new LPG (liquid petroleum gas) facility in Richards Bay, and…

EDWARD WEST edward.west@inl.co.za RCL FOODS’ share price soared 16.1 percent to 1 139 cents yesterday after it lifted headline earnings per share a massive 723.7 percent to 107.9c in the year to June 30. Management said the financial performance had been driven by a strong performance in the Sugar and Baking business units and continued robust delivery in Grocery. The food division delivered a strong result, with a record performance in sugar, which benefited from higher demand, strong cost control and improved sales mix. Chief financial officer Rob Field said the sugar division benefited from a bigger share of generally improved sugar industry proceeds, aided also by a higher sugar price. “It just goes to show how well this industry can do when things work in…