Star 2021-12-06

Banele Ginindza banele.ginindza@inl.co.za A R2.9 BILLION shot in the arm from the State to arms manufacturer Denel has not helped its situation as it still has to struggle with the disposal of its assets, timed for early next year, to meet its financial obligations, largely interest payments on debt, Chief executive Willliam Hloakoane has said. A large part of the R2.9 billion subvention from Finance Minister Enock Godongwana in his Medium Term Budget Policy Statement is being used to reduce interest payments on debt while it negotiates with interested buyers for the sale of some assets, including properties, by January next year to stabilise its finances. This is as the United Association of South Africa (Uasa) is pushing legal action on two fronts against the State-owned enterprise…

Edward West edward.west@inl.co.za OLD MUTUAL Private Equity (Ompe) on Friday made a more than R3.7 billion cash offer to acquire all of the shares in Long4Life, the owner of Sportsmans Warehouse and Sorbet stores. Long4Life’s share price increased 1.34 percent to R5.30 by late Friday afternoon, giving it a R3.7bn market capitalisation. The share later closed 2.29 percent higher at R5.35. Ompe, however, pitched its cash offer at R5.80 per share, which is 9.4 percent more than Friday’s share price. Ompe did a due diligence investigation into Long4Life prior to submitting its proposal, a statement said on Friday. Long4Life’s share price rose on Friday after the first details of the potential deal were released, this following some market speculation about a possible overture from Ompe a…

Edward West edward.west@inl.co.za ABSA GROUP’S share price rose strongly on Friday after it said normalised headline earnings per share for the year to December 31, 2021, was expected to be more than double the 946.5 cents for 2020. However, risks to its earnings guidance included the possibility of a more severe fourth wave of the Covid-19 than the bank expected, plus any unforeseen political, macroeconomic or regulatory changes. Absa’s share price increased 4.01 percent to R145.15 on Friday afternoon, this after the price had come under pressure in recent weeks after the firing of its lead independent director, who had named the bank a respondent in his court case against the Prudential Authority, which added to existing concerns about the changes at Absa’s board. The share later closed…

Philippa Larkin philippa.larkin@inl.co.za IN A VICTORY for problem-plagued Eskom, the power utility said on Friday that the North Gauteng High Court had ordered the National Energy Regulator of South Africa (Nersa) to process its application and to make a revenue decision for the 2023 financial year, which begins on April 1, 2022. The revenue decision would be based on the application made by Eskom to Nersa on June 2. This followed an urgent application by Eskom to overturn Nersa’s decision to reject the Eskom revenue application on the basis that a new pricing methodology was needed, a move the state-owned enterprise argued would create a regulatory vacuum for the electricity supply industry. Eskom also argued adapting to the new application process might take longer, jeopardising its financial status through…

Philippa Larkin philippa.larkin@inl.co.za THE SHARE price of Labat Africa, the JSE-listed black-owned listed cannabis Holdings group in South Africa, rose by 4.17 percent to R0.25 after it said on Friday that it had secured a R300 million investment commitment from US-based GR Global Ventures, an entity with expertise in cross border transactions in the cannabis sector, as it sought to accelerate growth. Labat Africa, with a focus on personal wellness, pharmaceutical grade medicinal cannabis and industrial hemp, said its initial capital raising process had been severely impacted by the Covid-19 pandemic, which had resulted in slowing down the implementation of some of Labat’s pioneering cannabis initiatives. With markets now beginning to reopen and investors on the look-out for new growth segments, this investment would accelerate the implementation and…

Dineo Faku dineo.faku@inl.co.za SIBANYE-Stillwater has reported a “perplexing” increase in the number of employees who have died on duty after four mineworkers were killed during two separate incidents on Friday. Sibanye said on Friday its safety record for 2021 had regressed and 18 employees had lost their lives in work-related incidents. The fatalities at Sibanye are against the backdrop of deteriorating safety in mines and come days after Impala Platinum recovered the bodies of three mineworkers who were trapped in a mudslide at the Rustenburg operations. Sibanye said in the first incident, an employee died at 2.30am on Friday after the ground caved in at the Rustenburg operations. In the second incident at around 10am on Friday three employees died following a tragic trackless mobile machinery incident at the gold…