Star 2023-03-13

FUTUREGROWTH Asset Management is running out of patience over the slow progress made to the Land Bank’s liability solution as the bank’s default position approaches its third year now. The leading creditor for the Land Bank on Friday said the continued default position posed significant risks to its clients and did not bode well for the other solutions that may be needed for other State-owned enterprises. In April 2020, the Land Bank experienced serious liquidity challenges after failing to repay about R50 billion maturing loans. The bank’s entire debt portfolio of about R45bn, of which R5.2bn is guaranteed, was considered to be in default due to cross-default clauses. FutureGrowth head of credit Olga Constantatos on Friday said three years was a long time to negotiate and resolve what is…

STOCKS on the JSE suffered one of the worst weeks this year, plunging for the fourth day in a row on Friday to another two-month low, as the latest US non-farm payrolls report triggered further rate-hike worries. The JSE All Share index plunged 1.6% to end Friday at 76 454 index points, its biggest daily decline since early January, bringing the bourse’s losses to about 2.3% for the week. Almost all sectors were trading in the red on Friday, led by logistics, property, renewables, tech, industrials, financials stocks, and resource-linked stocks. Equities were already under pressure amid lingering concerns that higher interest rates would trigger a global recession. This as investors were digesting the US jobs data and the possibility of faster interest rate hikes by the Federal Reserve…

AT LEAST 300 arrests have been made in efforts by business and the South African Police (SAPS) to stem extortion and attacks on projects by the “construction mafia”, although there remains some concern that the SAPS is reluctant to open some cases. According to the The National Priority Committee, there were encouraging convictions and recorded sentences as it prioritises advocacy for the business community to put an end to the scourge. The Global Initiative Against Transnational Organised Crime said there were no less than 183 infrastructure and construction projects worth more than R63billion ($3.9bn) struggling with protection rackets. “We are concerned regarding SAPS Customer Support Centres not being ready to record extortion cases. Victims allege that cases are not opened against high profile perpetrators. “Operational support in rural areas is…

PREMIER Group, the food and consumer product manufacturer that earlier this year postponed its listing, said on Friday that it would reinstate a listing on March 24, at an offer price of R53.82 per share, giving it a R6.9 billion equity valuation. The group – which sells under brands such as Snowflake, Blue Ribbon, Lil-Lets and Mandla Mageu, and which manufacturers through 30 factory sites around the country – said in its pre-listing statement the offer price equated to a 6.3 times earnings multiple, based on earnings for the last 12 months to September 30, 2022. Earlier plans to list had been postponed due to market turbulence. The initial offer will comprise an offer mainly to selected institutions, underwritten by current shareholders. “Brait (the private equity firm that currently…

IN THE CUT-THROAT world of technology, diversity and innovation can be hard to come by. That is why AYO Technology Solutions (AYO) stands out as a true trailblazer in the field. With its majority black ownership and 26-year track record of success, AYO has made waves on the Johannesburg Stock Exchange (JSE) since going public in 2017. However, despite the technology company’s commitment to digital transformation and customer service, AYO has been unfairly maligned by several media outlets over recent years – causing major setbacks for both the company and its valued customers. The investment in AYO by the Public Investment Corporation (PIC) was welcomed by both the JSE and Africa’s largest asset manager. But due to malicious media coverage, the PIC is seemingly suffering from a bout of regret.…

The GLOBAL tech community is currently under a dark cloud following the collapse of Silicon Valley Bank and its being shut down and put under the control of regulators. This is a moment that will remind many of the 2008 financial crisis, which was also triggered by the banking system. The technology startup sector will be adversely affected by these developments. How did things reach this point? Last week, on Thursday, shares of SVB Financial Group nosedived, falling more than 60% as the tech-focused bank attempted to shore up its balance sheet, igniting fears about its liquidity. This led to the bank’s trades being halted several times on the stock market, with some of the largest venture capital firms subsequently advising portfolio companies to move their money out of the…