Star 2021-11-18

EDWARD WEST edward.west@inl.co.za TONGAAT Hulett plans a rights offer, partially underwritten by shareholder and strategic partner Magister Investments to up to R2 billion, to put the sugar and property group on a sustainable trajectory through its turnaround process. However, the proposal to issue shares for cash did not appear to be met favourably by shareholders, and the share price fell a whopping 23.7 percent to R7.40 by late yesterday afternoon. The share price is still low, considering it traded at around R65 three years ago, prior to governance and accounting irregularities that forced new management to implement a turnaround process at the group. The amount of equity capital to be raised and the pricing of the rights offer was yet to be determined, but was expected to allow…

Dineo Faku dineo.faku@inl.co.za MTN SOUTH Africa yesterday an- nounced the R6.4 billion sale of 5 709 towers to Lagos-based IHS Towers, one of the world’s largest providers of telecommunications infrastructure. As part of the sale and leaseback transaction IHS Towers will provide Power-as-a-Service to MTN SA at about 12 800 sites across South Africa, including the acquired 5 709 sites. The deal makes IHS Towers, which is 29 percent owned by the MTN Group, South Africa’s biggest independent tower operator. Chief executive Sam Darwish said IHS Towers was committed to using its expertise to provide South Africans with “cutting-edge power services” where necessary. “I am exceptionally proud to an- nounce IHS’s creation of the largest independent tower operator in South Africa, which represents the start of a new…

Siphelele Dludla siphelele.dludla@inl.co.za CONSUMER prices are set to inch higher in November, driven up by rising fuel prices as headline inflation remained elevated for the sixth consecutive month in October. Statistics South Africa (StatsSA) yesterday said the annual consumer price inflation was 5 percent in October, unchanged from the September reading. On a monthly basis, consumer prices went up 0.2 percent, the same pace as in the prior month and matching market forecasts. StatsSA’s chief director for price statistics, Patrick Kelly, said the upward pressure came mainly from transport, food and non-alcoholic beverages, housing and utilities, primarily electricity and other fuels. “Food and non-alcoholic beverages increased by 6.1 percent year-on-year, housing and utilities increased by 4 percent,” Kelly said. “Transport increased by 10.9 percent year-on-year,…

Dineo Faku dineo.faku@inl.co.za WOOLWORTHS (Woolies) tumbled 10 percent after posting the bleak numbers from its Australian division and lower than expected sales from the mainstay food business. It hit a low of R51.50 in intraday trade, later closing on the JSE at R53.80. Woolies said the lockdowns in Australia would knock its financial performance for the first half of 2022. Chief executive Roy Bagattini, said: “While it is unfortunate that the impact of prolonged government-imposed lockdowns in Australia will negatively impact our overall results for the first half of the 2022 financial year, our teams have responded well to their immediate challenges, and more importantly, we remain steadfast in the execution of our longer-term growth strategies”. The group said 70 percent of its Australian brick-and-mortar sales base had…

Edward West edward.west@inl.co.za THE SPAR GROUP’S share price fell sharply by more than 6 percent yesterday afternoon after it declared a 5.7 percent lower dividend of 816 cents for the year to September 30, following Covid-19 trading restrictions in all its markets. Diluted headline earnings a share were up 5.5 percent to 1 193.7c. Net asset value per share increased 6.1 percent to 4 350.5c. The share price traded at R183.88 yesterday morning. The group said it had delivered a robust performance, despite numerous challenges. Turnover increased by 2.9 percent to R127.9 billion. In constant currency, turnover increased 3.9 percent, reflecting a strengthening rand. The group was also affected by the July civil unrest in South Africa – the wholesale…

Cross-border trade adds up significantly, but small-scale informal trade is not frequently recorded by customs offices. What is most encouraging about the African Continental Free Trade Area (AfCFTA) is its potential to fill this gap, and strengthen African institutions and streamline processes, ensuring that bigger issues of mispricing and malfeasance do not happen while bringing in small-scale informal traders. But the biggest gap in the AfCFTA is localisation and accessibility for small-scale informal traders. What does the AfCFTA do? African countries exporting to one another are faced with a high tariff averaging at 6.1%. And so, if African countries are able to reduce these tariffs, then they may stimulate more African imports, encouraging more sustainable jobs in manufacturing and becoming African producers and suppliers for Africa’s growing market – a…