Star 2024-09-03

THE AUDITOR-GENERAL (AG) has raised concerns over Transnet’s financial health after the State-owned logistics operator reported a loss that widened from R5.1 billion last year to R7.3bn in the year to March, a decline that it said yesterday was because the high court had ruled that it must pay Total SA and Sasol about R6bn after the petroleum companies accused it of breaching a 1991 pricing contract. Transnet, which has made a R9.3bn provision for the estimated claim, interest and legal fees, is appealing the ruling on “various grounds”. In addition to the appeal in the matter with Total SA and Sasol, Transnet and the Special Investigating Unit (SIU) have jointly taken Nedbank to the Gauteng High Court, Johannesburg, to set aside interest rate swop transactions, which took place…

The AUTOMOTIVE industry in South Africa is now hoping that the looming interest rate cuts would signal a positive shift to stimulate economic activities after new vehicle sales fell by 4.9% in August compared to the same month last year, following a 1.5% uptick in July. Data from the Automotive Business Council (Naamsa) yesterday showed that aggregate domestic new vehicle sales in August fell by 2 266 units, or 4.9%, to 43 588 units, down from the 45 854 vehicles sold in August 2023. This decline comes at a critical time for the automotive sector as the industry expects consumer appetite to tick up towards the festive season. Naamsa said the stronger July performance in the new vehicle market could not be sustained in August as consumers…

SANLAM Life Insurance plans to acquire a 25% stake in African Rainbow Capital Financial Services Holdings (ARC FSH) for R2.41 billion cash and part of the deal will be the sale of its 25% stake in ARC Financial Services Investments (ARC FSI) for R1.49bn. The sale in ARC FSI would be done via the issue by ARC FSH of ordinary shares to the value of R1.49bn, to Sanlam Life. Sanlam’s share price fell 3.46% to close at R85.81 yesterday. ARC FSH is the investment holding company for all the financial services investments of the Ubuntu-Botho Investments (UBI) group of companies, other than its shareholding in Sanlam, which is held directly by UBI. The deal generated some comment on the X social media platform with, for instance, Michael Jordaan (@MichaelJordaan)…

THE UPGRADING of China and South Africa’s Comprehensive Strategic Partnership to an All-Round Strategic Co-operative Partnership spelled a new era that would elevate mutually beneficial political and economic ties for the benefit of both countries and their people. Giving his opening remarks at the official talks with President Xi Jinping on occasion of the State visit to China yesterday, President Cyril Ramaphosa said the two countries have witnessed an increase in their bilateral trade. “However, as South Africa, we would like to narrow the trade deficit and address the structure of our trade. We were encouraged by the inward procurement mission of Chinese companies last year,” Ramaphosa said. “We urge for more sustainable manufacturing and job-creating investments. Development co-operation between our two countries continues to grow, covering many areas. We…

RCL FOODS will focus on growing organically and by acquisition and partnerships in the next part of its strategic journey following recent portfolio realignments that included listing Rainbow on the JSE. This was according to CEO Paul Cruickshank, who said in an interview that the food and sugar group, which has brands such as Bobtail, 5 Star, Pieman’s, Selati and Yum Yum, had seen an upturn in market demand in the two months after the June 30 financial year end in particular, although it “is not nearly enough yet” to indicate that consumers’ dire financial situation might have improved significantly. In the past year, there were two milestones to reshape the group’s portfolio around its value-added components. The first was disposing of Vector Logistics in August, which Cruickshank said was…

HOTELS, gaming and entertainment group Sun International is expecting to report an increase in earnings for the half-year to the end of June, boosted by its diversified operating portfolio that has embedded the company’s resilience amid a stronger performance from urban and resort hotels, Sunbet and urban casinos. Shares in the company on the JSE closed 2.85% up at R43.01 yesterday, maintaining its strong mo- mentum in the past week, month and year-to-date periods. This came as shareholders reacted positively to Sun International’s interim trading update in which it said it expected earnings for the June 2024 interim period to rise. The company sees its headline earnings per share for the half-year period increasing from the same period last year by between 5.4% and 12.4% to a range between 182…