Star 2022-01-31

Edward West edward.west@inl.co.za NEARLY seven years after the fact, the Johannesburg Stock Exchange (JSE), last week issued an unusual public censure to African Equity Empowerment Investments (AEEI) and its then sponsors, the PSG Group. The censure revolves around a 2015 share deal with SAAB Grintek Defence in which AEEI’s then corporate sponsors, PSG, did not advise the company to inform its shareholders or seek their approval, for a R120 million share deal that included a call option. The question, Dr Iqbal Survé, chairperson of Sekunjalo Investment Holdings (SIH), a shareholder in AEEI, has asked, is why now, and why use his name to drive the headlines? Commenting to Business Report, Dr Survé said he believes the JSE’s timing is all to do with the concerted effort by motivated parties…

GIVEN MAJOLA given.majola@inl.co.za THE PROFITABILITY and economic sustainability of the citrus industry is in jeopardy due to the hike in input and service costs, according to the Citrus Growers Association (CGA). The organisation’s chief executive, Justin Chadwick, said in his weekly newsletter last week that indications were that this was set to continue. “This has included increases in shipping costs that can only be described as alarming,” he said. In November, southern African citrus growers had delivered 161.6 million cartons of local citrus across the world last year, an increase of 18.6 million cartons when compared to 2020. This was despite an extremely difficult and complex season that put the entire industry under severe strain. The sector faced a number of serious challenges including the global shipping crisis, stringent…

Unbundling of “cumbersome operating structure” through shared services near completion Edward West edward.west@inl.co.za EOH HOLDINGS’ share price stumbled to close 16.61 percent lower at R5.27 on Friday after it said its board was considering an equity raise among the options that might be required to further whittle down its debt and improve liquidity. It said a R1.5 billion bridge debt facility maturing in October 2022 would be partially repaid using proceeds from asset disposals, and the board was considering options to settle the remaining R750 million, as well as raise liquidity to pursue growth opportunities. These options included the possibility of an equity raise, the introduction of mezzanine debt, a combination of these, or further asset disposals, even though the asset disposal process was…

Dieketseng Maleke dieketseng.maleke@inl.co.za STEINHOFF International’s annual report was cheered by the markets and showed a pay day bonanza for Steinhoff International executives for leading the retailer to the light at the end of the tunnel in the wake of the accounting scandal that nearly led to the firm flat lining. The shares closed the day 8.52 percent higher at R4.97. The South Africa-based international retailer’s annual report, which was released with its first unqualified audit opinion since the fraud emerged, rewarded some of its team with double-digit remuneration. Chief executive Louis du Preez for the year ended September 30, 2021, saw his total remuneration and fees total €3.87 million (R67.19m), an 11.5 percent increase from his total pay in 2020, but his basic salary didn’t change. The…

Edward West edward.west@inl.co.za INDUSTRIALS real estate investment trust (Reit), the UK property company, has increased its multi-let industrial (MLI) portfolio to 95 percent following six acquisitions in the three months to December 31. Chief executive Paul Arenson said in spite of the onset of the Omicron variant at the end of 2021, the quarter was one of the busiest for new lettings and renewals. “This is the fifth successive quarter we achieved average uplifts in rent of more than 20 percent at lease expiry or renewal, illustrating the strength of the MLI market, which is characterised by affordable rents and low levels of supply,” he said in a trading update on Friday. These market dynamics had helped the company deliver like-for-like growth in passing rents at the top…

Edward West edward.west@inl.co.za HYPROP Investments will acquire four assets in Hystead’s Eastern European (EE) portfolio, including Skopje City Mall, North Macedonia; City Center One East and City Center One West in Croatia, and Mall of Sofia, Bulgaria, for €173 million (R3 billion). Hystead’s fifth property, Delta City Podgorica in Montenegro, is being sold, and Hyprop plans to retain its €45m interest in it, representing 60 percent of the value, until the sale is complete, Hyprop chief executive Morné Wilken said on Friday. Hyprop owns 60 percent of Hystead, with PDI Investment Holdings owning the other 40 percent. The acquisitions will be funded from Hyprop’s cash reserves and debt facilities. Hystead would use the funds to reduce equity debt. A minimum of €132m of the euro…