Star 2023-11-17

WESTERN investors in Russian companies are bracing for a new presidential decree under consideration in Moscow which they fear could force them to sell their shareholdings to the Russian government at big discounts. The potential decree, which could give Russia a “super pre-emptive right” to buy shares in strategic companies from foreign shareholders, marks the latest blow to investors holding Russian assets that were worth several billions of dollars before February 2022. Russia has been trying to cut foreign ownership and influence over its biggest listed companies since Presi- dent Vladimir Putin ordered troops into Ukraine, triggering sweeping Western sanctions. The methods include cancelling special investment programmes originally designed to increase the flow of international capital into Russian companies and bypassing global banks in the supervision of those schemes, resulting…

Life Healthcare is bumping up its South African capital expenditure for the year to September 2024 to R2.1 billion to purchase a hospital it currently leases as well as spending on product development for its Life Molecular Imaging (LMI) unit. In the year to the end of September 2023, Life Healthcare invested R1.5bn, up from R1.4bn year earlier, in capital expenditure covering continuing operations. Of this, maintenance capex for the year under review amounted to R1.2bn while growth capex stood at R366 million. “In FY2024 we plan to spend R2.1bn on capital expenditure in SA, including R350m on the purchase of a hospital property currently leased. We also plan to spend R200m on capex for LMI, largely earmarked for investment into LMI’s product pipeline development,” the company said. The planned…

South African traders get edgy as world super powers make peace in California THE JSE SNAPPED a three-day rally yesterday as emerging markets slipped on fears of frosting US-China relations, a subdued Chinese economy, and a possible downgrade of South Africa’s credit ratings. This comes after US President Joe Biden said he had not changed his view that Chinese President Xi Jinping was effectively a dictator following their meeting on the sidelines of the Asia-Pacific summit in California. The two world’s largest economies have had a frosty relationship over the last decade, especially during Biden’s predecessor Donald Trump’s administration, which escalated into a full-blown trade war. However, the two leaders agreed to resume critical military communication amid efforts to ease growing geopolitical tensions in Asia, while Xi praised the US…

“WE WANT TO see KZN (KwaZulu- Natal) playing a leading role as the number one destination of choice, both regionally and even globally. That is our intention,” newly appointed acting CEO of Tourism KZN Sibusiso Gumbi said in an interview. Gumbi said that he appreciates the magnitude of task that lies ahead of him as he takes the mantle to usher in a new chapter while the festive season kicks off. Gumbi is assuming the responsibility of reviving tourism in the province where businesses have been crippled by the impact of the Covid-19 lockdowns, the July 2021 unrest, and natural disasters such as the floods, which killed more than 450 people last year. Disposable incomes have also dwindled due to rising cost of living and unemployment, leaving people having to…

EMIRA Property Fund declared an interim dividend of 61.74 cents per share that was 7.1% lower than that declared at the end of December 2022, but the payout was bang on forecasts made at the end of the last financial year, CEO Geoff Jennett said yesterday. In this context, “we are okay with it,” he said in an interview. Portfolio metrics had improved across all sectors, reflecting increased stability and “giving us cause for cautious optimism that the market is nearer to bottoming out and may be poised for upside.” The group also met key strategic targets through the period. Distributable earnings for six months to September 30 fell to R310.6 million compared to R378.7m for the prior period, primarily because the current period excluded interest income from…

Bank and wealth management group Investec lifted its interim dividend 14.8% to 15.5 pence (R353) per share in its first half after successful client acquisition strategies, loan book growth and benefits from the high interest rates. The lender also yesterday announced it intended to launch an equities trading platform called Clarity, with the aim of competing in a market currently dominated by EasyEquities, and which would offer competitive fees, but a launch date has so far not yet been provided. CEO Fani Titi said the macroeconomic backdrop had been difficult characterised by high inflation, elevated global interest rates and persistent market volatility. “Our client franchises reported solid performance while the results also reflect the conclusions of the strategic actions over the past 18 months. Our balance sheet remains strong and…