Star 2024-10-08

In a transformative move, Richemont has announced the sale of its online luxury clothing and accessories subsidiary, Yoox Net-A-Porter (YNAP), to MYT Netherlands Parent (Mytheresa) for €555 million (R10.6 billion), with no accompanying debt. Richemont will also extend a €100m revolving credit facility to YNAP. This sale comes 10 months after a prior attempt to sell YNAP to Farfetch fell through. As part of the deal, Richemont will gain a 33% equity stake in Mytheresa, signalling a strategic shift towards aligning YNAP with Mytheresa’s online luxury platform. YNAP was originally formed in 2015 when Italian online fashion retailer Yoox acquired Richemont’s Net-A-Porter, which was then promoted as “the world’s biggest luxury fashion store”. The current deal is expected to be finalise in the first half of next year. The sale…

Eskom took another step forward on its turnaround plan yesterday with the formal launch of the National Transmission Company of South Africa (NTCSA), the first step of a proposed splitting of Eskom into three companies, focused on generation, transmission, and distribution. Yesterday’s launch comes three months after July 1, 2024, when the NTCSA became an independent, wholly owned subsidiary of Eskom Holdings. The NTCSA’s board was appointed in January, and the company received trading and import/export licences in July 2024, while its transmission licences were granted by the National Energy Regulator of South Africa (Nersa) in July 2023. NTCSA chairperson Priscillah Mabelane and interim CEO Segomoco Scheppers yesterday presented the company’s strategic vision for sustainable energy access and to support inclusive economic growth. Key focus areas include accelerating the Transmission…

The local citrus industry is not being threatened by a new greening disease, Justin Chadwick, CEO of the Citrus Growers’ Association of Southern Africa (CGA), said in statement yesterday. “African Citrus Greening (ACG) is under official control in South Africa by preventing movement of propagation material from greening areas to greening-free areas. It is important to note that ACG cannot be spread by fruit or seed, and resultantly there is no restriction on the movement of citrus fruit – and this applies worldwide. Therefore, any suggestions that export citrus can spread this disease is incorrect,” he added. The statement came after CGA said some media outlets were incorrectly reporting that South Africa faced a new disease threat in the form of the African strain of the citrus-greening disease. HLB (Huanglongbing…

Markets could be feeling uneasy due to prevailing geopolitical tensions, says an economist The rand and the JSE’s All Share index started the week on the back foot as tensions in the Middle East escalate and positive data out of the US prompted investors to become more cautious. While the market closed in the red on Friday, with the All Share index down 0.1%, closing at 86 332.42 points, the index recovered slightly yesterday, down marginally at 0.03% to close at 86 309points. However, mining counters were weighing on the bourse, as the full effect of Chinese stimulation packages on commodities has yet to be fully understood. The rand is pulling back and started the week at R17.49 to the dollar, after trading at R17.09 to the greenback as…

Foreign direct investment (FDI) is an essential engine for economic growth in developing economies and South Africa is no exception. The country's strategic location, diverse economy and access to key markets make it an attractive destination for international investors. However, despite its appeal, attracting and sustaining foreign investment requires an environment conducive to long-term returns. One of the foremost concerns for any foreign investor is political stability. Investors need confidence that the government in power will not only remain stable, but will also maintain clear, consistent policies that support the free market and economic growth. While South Africa enjoys a stable democratic process, there are concerns about policy uncertainty, especially in areas such as land reform and mining regulations. For instance, the government's stance on expropriation without compensation has previously…

Jubilee Metals is pursuing further near surface copper resource opportunities in Zambia after completing a due diligence for an open pit mine in the southern African country where it intends to ramp up production. Leon Coetzer, the CEO of Jubilee Metals, said yesterday, "Zambia holds numerous near surface resource opportunities, which we are actively pursuing.” The completion of due diligence studies for the Project G open pit copper mining operation in Zambia had resulted in Jubilee opting to “acquire a majority interest” under revised terms. These entailed increasing Jubilee’s holding to 65% from the previously announced 51% interest. It will pay $2 million (R35m) for acquisition of the 65% holding in Project G in cash instead of shares, giving it two open pit mining operations in Zambia. Jubilee has also…