Star 2023-10-16

Dieketseng Maleke dieketseng.maleke@inl.co.za THE MARKET cheered Sasfin Holding’s R3.2 billion sale of its Capital Equipment Finance (CEF) and Commercial Property Finance (CPF) businesses to African Bank as it focuses on strengthening its core business. The shares closed 40.02% higher at R31 on Friday and have increased by 24% in the past six months. African Bank will purchase the CEF loan book; plus a R100 million in goodwill, while as regards the CPF business, African Bank will pay Sasfin the Agterskot Amounts “as and when they are realised”. The deal must still be approved by shareholders in a general meeting. If approved, the proceeds of the transaction will be redirected to the continued growth of the group's core businesses and enhancing total return for shareholders. The group retains its…

AFRICAN Bank expects the capital equipment and commercial property finance businesses it has acquired from Sasfin for R3.2 billion to contribute to its bottom line revenue growth in its asset book, the bank’s group executive for business banking, Zwelibanzi Manyathi, says. The financier last year acquired Grind- rod Bank and is geared to tap into its strategy to avail more capital to South African businesses through the new acquisitions. The prior year African Bank completed its acquisition of prominent micro-lenders Ubank. As part of its strategy to contribute to transformation through capacitating South African entrepreneurs and SMEs, African Bank has revealed to Business Report that it is launching a digital lending platform early next year. “We are building a digital lending business for entrepreneurs who need access to finance…

State-owned enterprise seeks deeper accountability framework, cost reduction, and better relations with stakeholders TRANSNET’S board said on Saturday it had developed a turnaround plan that it would submit to its shareholder, the government, this week, and that it would also ask for additional funding to support its operations. On Friday, the Presidency clarified misleading reports saying: “Inaccurate media reports have created the impression that the Presidency seeks to place Transnet under private control. This is not the case. “South Africa’s port and rail infrastructure are strategic national assets and government has taken a clear stance that they will remain in public ownership.” Media reports were leaked that among other plans, the Presidency aimed to set up an independent port and rail regulator and a rolling stock leasing company, which…

The WORLD Bank is in talks about a poten- tial $1 billion loan to help enable South Africa to reform its energy sector, a bank official told Reuters, as the country tries to overcome record power cuts that have crippled the economy. The loan, which would be directly to the government rather than to State utility Eskom, is “under discussion”, Marie Fran- coise Marie-Nelly, the bank’s director for South Africa, said in an interview in Marra- kech, Morocco. “It is going to come very soon,” she added, declining to specify a timeframe. South Africa is facing its worst power crisis, with Eskom’s ageing, coal-fired plants often breaking down. Rolling power cuts have crimped economic growth, while fuelling private investment in renewable energy. “It’s a policy development loan which supports critical…

THE RAND HOVERED around two-week highs on Friday, mainly supported by expectations of interest rates staying high for an extended period while the rally in the gold prices had a positive impact on the rand since South Africa is a gold exporting country. After retreating to five-months high last week, the rand traded around R18.90 to the US dollar early on Friday, holding close to an over two-week high before closing Friday 0.2% higher at R19.03/$1. The minutes of the Federal Reserve’s September monetary policy meeting showed that the central bank is committed to maintaining a “higher for longer” monetary policy stance until it is confident that inflation is falling back to the 2% target. The Consumer Price Index in the US increased for a second month in a row…

JSE-LISTED Sun International’s Sun City Resort has become one of the latest energy consumers to have embarked on a small-scale embedded generation after completing installation of a R16 million solar plant in a bid to reduce their consumption from the national grid. Taking its name to heart and harnessing energy from the sun, Sun City enjoys many sunny days throughout the year. On Friday, the resort officially launched its grid-tied solar photovoltaic system rated at 1.4 megawatts peak of installed capacity tied in at the Sun Central entertainment centre for use around Sun City. The plant has an expected lifespan of beyond 25 years when coupled with a well-planned preventative maintenance regime. Sun City general manager Brett Hoppé said the installed plant would displace an equivalent of 2…