Star 2021-10-05

Siphelele Dludla siphelele.dludla@inl.co.za South Africa’s tourism industry could be thrown a lifeline later this week when the United Kingdom (UK) government reviews its decision on travel restrictions, which could boost economic activity ahead of the festive season. This comes after a meeting of scientists and advisors from both countries last week on further research into the Beta variant that has created the perception that South Africa was a Covid-19 hotspot. The relaxation of South Africa’s lockdown restriction to their lowest, with a midnight curfew and alcohol sales throughout the week, as the country officially “exited” the third wave of infections, is likely to boost the prospect of relaxation of the UK ban. Currently, South Africa is one of 54 countries on the UK’s “red list”, from which travellers arriving…

Dineo Faku dineo.faku@inl.co.za ASCENDIS Health received the nod from shareholders to proceed with a proposed restructuring of the group that has avoided placing the company’s South African assets in business rescue. The approval paves the way for the implementation of the transaction to settle debt of approximately €444 million (R7.65 billion) owed to senior lenders. Ascendis said 98.5 percent of shareholders voted in favour of the recapitalisation, exceeding the required 75 percent threshold. Shareholders representing over 47 percent of the company’s issued shares voted at the general meeting. Shareholders also supported the transactions for the disposal of the Animal Health and Respiratory Care Africa (RCA) businesses. Chief executive Mark Sardi welcomed the strong vote of confidence from retail and institutional shareholders following months of negotiations…

Dineo Faku dineo.faku@inl.co.za JAYENDRA Naidoo, by his conduct, “breached and violated his fiduciary duty” and was not empowered with authority to institute legal proceedings against furniture retailer Steinhoff, according to a Western Cape High Court judgment last week. Steinhoff challenged a resolution adopted by Lancaster 101 which purported to grant Naidoo its director authority to institute legal proceedings in a bid to recoup losses after the retailer’s share price crashed in December 2017. Steinhoff argued Naidoo did not have authority to institute legal proceedings given his directorship in Lancaster 101 (L101) and the subsequent “windfall” that he received as sole shareholder and director of the Lancaster Group. Naidoo, a former trade unionist through his company L101, convinced the Public Investment Corporation (PIC), which manages assets worth over R1 trillion,…

Siphelele Dludla siphelele.dudla@inl.co.za THE RAND OPENED the week on the back foot again yesterday, after closing stronger on Friday, as the markets turned highly risk sensitive with fallout over China’s largest property group, Evergrande, taking another turn. On Friday, the rand firmed strongly, closing 1.4 percent stronger at R14.87 to the greenback as US bond yields firmed and the dollar backtracked on its recent strength. But Chinese property giant Evergrande’s shares were suspended yesterday, triggering fears of its potential collapse, a move that would trigger serious shock waves throughout global markets. The company said it was going to make “an announcement containing inside information about a major transaction” which could see it selling a majority stake to a rival real estate firm in order to cover its mounting debt.…

Banele Ginindza banele.ginindza@inl.co.za INSURER Metropolitan has come out strongly to combat youth unemployment by backing the Collective Shapers initiative with the launch of the first incubator programme in Polokwane, Limpopo, to aid the city develop its farming knowledge and skills and to alleviate youth unemployment. The initiative in Polokwane is in conjunction with Agri Enterprises, who are the partners in this first leg, which will then move to other parts of the country. The programme in Polokwane includes education on agriculture, building and maintaining a business, and post-course support for when participants leave the classroom and begin working. Metropolitan head of marketing Nontokozo Madonsela told Business Report the Polokwane initiative, which will take a first batch of 20 agricultural entrepreneurs, was a litmus for the roll-out expected over the next…

Edward West edward.west@inl.co.za THE AGRICULTURAL sector was likely to grow by more than 6 percent this year after an already solid growth of 13.4 percent year-on-year last year, the Agricultural Business Chamber (Agbiz) said yesterday. The association of agribusinesses chief economist Wandile Sihlobo said this expansion would likely slow to a long-term average of about 3 percent next year. “The continuous favourable weather conditions, strong export activity and relatively higher commodity prices will remain critical catalysts for growth in this sector in the near term. “While there remains uncertainty about the commodity price trajectory, the expected La Niña and associated dryness it typically brings to South America could prove to be a significant global price supporting factor and, in turn, boost the South African agricultural commodities market,”…