Thursday, November 13, 2025
Subscribe
Home Blog Page 22

WeTransfer: rage against the machine

Dominique Olivier
-
1
WeTransfer: rage against the machine

WeTransfer was in hot water this week over an (apparently) ill-worded change to their terms and conditions. User outrage seems to have brought them back down to earth for the time being – but questions around digital permissions, data ownership and AI training continue to loom over the tech industry. 

There are two types of people in the world: those who carry around memory sticks, and those who use WeTransfer. And with remote working, many don’t have much choice but to be the latter.

I remember the first time a client asked me to send a file via WeTransfer. I was deeply sceptical about this service that just existed on the internet. So you’re telling me that I can upload large files – for free – without even creating a profile, and just send them whizzing through the net, to be received in perfect order by my client? I was doubtful – and yet, it worked perfectly. Since then, I estimate that I’ve sent and received hundreds of WeTransfers, if not more. 

I’m sure that my experience is not a unique one. Most of us have come to think of WeTransfer as the trusty digital courier that we actually want on our team. No clunky installs, no intrusive ads, and (best of all) no size limits. Just point your browser to WeTransfer.com, drag in that 5 GB design mock‑up or 2 GB video edit, enter an email or two, and hit send. Moments later, your recipient has a link to download everything. Simple. Elegant. It’s no surprise that WeTransfer soon became the tool of choice for creatives, particularly  photographers, filmmakers, graphic designers, and marketing teams – basically anyone who works with files too big to fit into a standard email inbox.

But this week, that trusty magic hit a snag. A small tweak to WeTransfer’s Terms of Service, initially buried in legalese, sounded an alarm bell for thousands of users. The change was made to Section 6.3 of WeTransfer’s Terms of Service, which specifically referred to granting the company “a perpetual, worldwide, non-exclusive, royalty-free, transferable, sub-licenseable license” and allowing it to use uploaded content “for the purposes of operating, developing, commercializing, and improving the service or new technologies or services, including to improve performance of machine learning models that enhance our content moderation policies,” as well as “the right to reproduce, distribute, modify, prepare derivative works based upon, broadcast, communicate to the public, publicly display, and perform content.”

Put simply, under the new terms, that beautiful design you just transferred could be used to teach an algorithm how to spot “good design”, and then potentially generate something similar, all under WeTransfer’s roof. For free. For them, not for you. As that old story goes: if it’s not obvious what the product is, that’s because you’re the product.

That tiny phrase, set to take effect August 8, suddenly felt like handing WeTransfer (and anyone they license or sell that right to) a perpetual, royalty‑free key to a creative vault. And creatives were not having it. 

Why creatives saw red

Across the creative world, fear is spreading fast – and not just around WeTransfer. Adobe came under fire in June 2024 after quietly updating its Creative Cloud terms to let “automated and manual methods” access user content, sparking an immediate backlash from photographers, graphic designers, and document creators. Within days, Adobe clarified that it will not train AI on customer work nor claim ownership over it, and rolled back the controversial language 

Meanwhile, Meta included clauses in its privacy policy allowing public posts and comments to be used for training its AI models, including Llama and its new Meta AI assistant. EU regulators forced a pause in June 2024, but Meta resumed using public content in the EU and UK after securing assurances, and continues training with US public data.

Even Zoom wasn’t immune. In mid‑2023, terms surfaced that implied meetings and chat transcripts could be used for AI training, prompting widespread concern. Zoom clarified that it would not use audio, video, or chat content for training without explicit consent.

Bottom line: This isn’t a WeTransfer-only problem; it’s the latest flare-up in a sweeping industry trend. Tech companies are increasingly treating user content as AI training fodder, often hiding the permissions to do so in legal fine print. And, time and again, creators are fighting back, pushing for clarity, consent, and real control.

At the core of the latest backlash was a deep sense of betrayal. WeTransfer had long been seen as a friend to creatives, a rare tech company that talked the talk when it came to respecting privacy and supporting artistry. Finding out that a new clause could quietly hand over the rights to use, remix, and monetise work felt less like a policy update and more like the rug being pulled out from under the people who made the platform what it is.

WeTransfer’s rapid backtrack

Within 48 hours of the backlash, WeTransfer came sprinting out with a digital fire extinguisher in hand – a press release. The company was quick to clarify that they’ve never used user files to train AI models, they don’t currently share or sell content for AI development, and the clause in question was just a bit of legal scaffolding for some hypothetical content moderation tools that might be built one day. There are no AI experiments running behind the curtain and no shadowy deals with data-hungry third parties. At least, that’s for the time being.

To help restore trust, the controversial machine learning language was scrubbed from the Terms of Service, swapped out for a simpler, cleaner version that sticks to basics: WeTransfer can use your files to run and improve the service, and that’s it. That means no AI, no derivative works, and no vague future-tech loopholes. They also rolled out a plain-English FAQ to break things down for non-lawyers, walking users through what the update meant and what it didn’t.

But by then, the damage had been done, and users weren’t exactly queuing up to forgive and forget. Many said they were reviewing their subscriptions, looking for alternatives, or at the very least, keeping one wary eye on the next T&C update. Because for all the soothing language and course correction, the incident shook something deeper: the sense that WeTransfer was a safe harbour for creatives. And when that trust wobbles (even briefly) it’s hard to pretend like nothing happened.

What comes next?

WeTransfer’s correction may soothe immediate fears, but it won’t erase the deeper unease about how user‑generated content fuels AI. As long as models require data to train, companies will continue eyeing every upload as a potential resource. To prevent the next backlash, platforms must embrace radical transparency: drafting terms that speak plainly about AI usage, offering opt‑in mechanisms, and even sharing revenue when creators’ work drives value. 

Ronald Hans, the Dutch co-founder of WeTransfer, had some choice words about the situation as well. He has re-emerged and announced a new project aimed squarely at creators who feel burned by the recent drama. The project is Boomerang, a new file-sharing service that, in his words, “champions creativity instead of stealing it.” Subtle? Not exactly. In an interview with Dutch newspaper NRC, Hans described the controversial changes to WeTransfer’s terms as “a slap in the face,” cooked up for the benefit of “a handful of people in suits.” Tell us how you really feel, Ronald.

Since stepping away from WeTransfer back in 2018 and watching it get scooped up by Italian tech investor Bending Spoons in 2022, Hans has mostly stayed quiet. But now he says he’s officially “out of retirement” and back to building creator-friendly tools, including a newsletter platform called Rumicat, and yes, a WeTransfer alternative that he says he started working on because, frankly, he saw this whole mess coming.

For creatives, the takeaway is clear: scrutinise your Terms of Service, ask tough questions about AI, and be ready to switch if a service overreaches. And for tech firms, the lesson is equally stark: trust is fragile. Once you trade goodwill for ambiguity, rebuilding it takes far more than a revised clause. In the end, it’s the creators who hold the real power. If they stop uploading, the AI revolution stalls. And right now, they’re watching every line of fine print.

About the author: Dominique Olivier

Dominique Olivier is the founder of human.writer, where she uses her love of storytelling and ideation to help brands solve problems.

She is a weekly columnist in Ghost Mail and collaborates with The Finance Ghost on Ghost Mail Weekender, a Sunday publication designed to help you be more interesting. She now also writes a regular column for Daily Maverick.

Dominique can be reached on LinkedIn here.

Ghost Bites (BHP | Hyprop – MAS | Quantum Foods | Valterra Platinum | Vodacom – Remgro)

The Finance Ghost
-
0
Ghost Bites (BHP | Hyprop – MAS | Quantum Foods | Valterra Platinum | Vodacom – Remgro)

Record iron ore and copper production at BHP (JSE: BHG)

And yet the share price is down nearly 10% over 12 months

This is a great example of how mining companies can only “control the controllables” (i.e. production), with overall performance actually reliant on global commodity prices. Even though BHP achieved record iron ore and copper production in the year ended June 2025, the share price is down nearly 10% over the past 12 months. This is because global iron ore prices are under pressure thanks to factors like weak steel demand in China, an issue that has strongly contributed to the seemingly inevitable death of ArcelorMittal’s longs business as well.

On the plus side, copper prices have climbed sharply in the past year, so that certainly helps. The average realised price was 7% higher for BHP. Copper assets are all the rage at the moment, with underlying drivers including global electrification. BHP’s copper production increased by 8% year-on-year. Unfortunately, they do anticipate a dip in production in FY26, with a planned lower grade in Chile.

In iron ore, production for FY26 is expected to be slightly higher than in FY25. This means that BHP would benefit tremendously from any kind of global stimulus activity, especially in China as a potential response to the current geopolitical pressures being championed by the US. Average realised prices for iron ore fell 19% in FY25, so any relief would be most welcomed by investors.

Coal prices were also under pressure in this period, with average realised prices for steelmaking coal and energy coal down 27% and 11% respectively.

When mining houses achieve their production targets, it means good news for unit costs as well. This is because of the overheads associated with production, which are then spread across a higher number of units. So, with such strong production numbers at BHP, it’s not a surprise that they are on track for unit cost guidance in most of their operations.

The group’s capital expenditure for the year is expected to be in line with full-year guidance of $10 billion. Net debt will be around $13 billion. The Jansen Stage 1 potash project is 68% complete, with a total expected capex bill of $7 to $7.4 billion for that asset and first production expected to be in mid-2027.

Hyprop finally plays its hand re: MAS (JSE: HYP | JSE: MSP)

I’m happy to see Hyprop going ahead with this

As I’ve mentioned several times regarding this situation, I wasn’t a fan of Hyprop raising capital from the market with only the vague promise of moving ahead with an offer to MAS shareholders. I’m pleased to see that they pulled the trigger on it, otherwise it would’ve set a questionable precedent around investors throwing cash at listed companies without much guarantee of what it would be used for.

For MAS of course, this adds yet more spice into the mix. We already have Prime Kapital on one side of the equation, who called a shareholders meeting that I don’t think went to plan at all. Then we have a group of South African institutional shareholders who have their own views on this situation, calling for several changes to the board. Now, on top of this, we have Hyprop swooping in with a cash-and-shares offer to MAS shareholders.

There’s a cash alternative capped at R800 million, which is in line with Hyprop’s recent capital raise. With MAS trading on a market cap of R16.5 billion, that amount won’t go very far. For this deal to have any chance of success, MAS shareholders need to be happy to receive 0.42224 Hyprop shares per MAS share. At Friday’s closing price, that values MAS at R18.44 per share. The cash offer is based on R24 per MAS share. MAS is currently trading at around R23 per share. Clearly, there are a few nuances here.

The cash offer at R24 per share is really just a sweetener. Presumably every shareholder who wants to accept the offer will ask for the maximum possible cash amount as the implied value per share is much higher. But there’s not much cash to go around, so the blender offer price is much closer to what share exchange ratio suggests.

Why is Hyprop doing this? Apart from the fact that they are putting in a pretty opportunistic bid in terms of the share exchange ratio, the other benefit is that Hyprop already has some exposure in Eastern Europe that would be much larger if they could get this deal done. If all goes ahead and Hyprop gets a controlling stake in MAS, that stake would be around a third of Hyprop’s net asset value.

Why would MAS shareholders say yes to this? Well, the price implied by the share ratio is in line with where MAS was trading as recently as the end of May, with speculative trade around deal activity having driven the recent performance. This means that for large shareholders who have been on the MAS register for a while, the Hyprop deal isn’t unappealing relative to their average in-prices. If the various deals simply fizzle out, then MAS shareholders could easily see the price drop back down to the implied Hyprop offer level anyway – or worse. Hyprop shares are also more liquid than MAS (and infinitely more liquid than the preference share that Prime Kapital initially wanted to list as part of their plan to acquire MAS), so that makes a difference as well. Hyprop describes those proposed instruments as having “unknown liquidity” – that’s a rather kind way to put it. We know that the liquidity will be close to zero on an obscure inward listed preference share, which is why Prime Kapital’s initial salvo got no traction in the market.

What’s the catch? Well, a condition for the offer is that Hyprop would need to hold at least a controlling stake in MAS when all is said and done (i.e. more than 50%). Hyprop also requires access to all the documents related to the Prime Kapital relationship and the underlying investments, with the offer only going ahead if those terms are acceptable to Hyprop. There are a bunch of regulatory conditions as well of course.

Even if the Hyprop offer proves to be popular with shareholders, there’s still a long road to walk with governance at MAS and solving the shareholder relationships.

An update on the Quantum Foods shareholder register (JSE: QFH)

Punters who hoped for a juicy take-private deal have been disappointed

In case you’re keeping track of Quantum Foods, the company has announced that major shareholders Braemar Trading and Country Bird Holdings have entered into a right of first refusal arrangement. As the name suggests, if either party wants to sell their shares, they must offer it to the other party first. If this happens, the buyer (either way around) would end up with 47.54% of the total shares in issue, so they must each currently hold the same number of shares in Quantum Foods.

The parties confirm that they aren’t acting in concert with each other or any other third party and that they currently don’t have an intention to make an offer to shareholders.

The chart is a cautionary tale about speculative buying in the hope of a take-private, as the share price has washed away since the chaos we saw in early 2024:

Flooding in February ruined Valterra Platinum’s half-year numbers (JSE: VAL)

In case you’ve forgotten, this is the renamed Anglo American Platinum

Valterra Platinum’s share price is up more than 50% year-to-date, with the market celebrating much improved conditions in the PGM sector. And yet, earnings for the first half have nosedived, with HEPS expected to be be between 76% and 88% lower. Despite this announcement coming out early on Friday, Valterra still closed over 5% higher for the day!

The market is clearly looking firmly to the future here, which tells you that the latest result is an anomaly. Indeed, the cause of the pain is a 25% drop in PGM sales volumes, thanks to significant flooding in February that affected the Tumela Mine at Amandelbult. There were some other factors as well, but the flooding was clearly the big issue.

The reason why the share price is still doing well is because Valterra expects a strong recovery in the second half, with a plan to deliver production within guidance (admittedly at the lower end). It also helps that if you exclude Amandelbult, own-mine production was actually up 1%.

There was also R1.4 billion in once-off demerger costs for the split from Anglo American, more than offset by R2.1 billion in cost savings achieved in the period. And although it affects EPS rather than HEPS, there was a R0.9 billion write-off of work done at Mortimer Smelter, with the decision taken to place it on care and maintenance.

The average realised basket price was 6% higher in dollars, boosted by a 16% higher realised rhodium price and a 2% increase in realised platinum and palladium prices.

Vodacom and Remgro announce revised terms of the fibre deal (JSE: VOD | JSE: REM)

Technically, the Competition Tribunal still needs to approve this on 22nd July

After an incredibly long process to try and get this deal across the line (the first terms announcement was released in November 2021 – and no, that’s not a typo), Vodacom and Remgro are nearly there. The Competition Commission has agreed to support the deal, with the Competition Tribunal hearing scheduled for 22nd July. Although the expectation is that it will be approved, anything can still happen.

There are some changes to the financial terms of the deal. I’m not convinced that the changes in the latest announcement capture the details of the conditions under which the Competition Commission changed its mind, so perhaps more details will emerge after the Competition Tribunal hearing.

In the meantime, what we know is that Vodacom will contribute its fibre business valued at R4.9 billion and will subscribe for new shares in Maziv for R6.1 billion in cash. They will then invest a further R2.5 billion in acquiring Maziv shares from Remgro subsidiary CIVH, taking Vodacom’s stake in the enlarged fibre entity to 30%.

Now, the R2.5 billion will be reduced if Maziv declares a pre-implementation dividend of R4.2 billion, which essentially means stripping out the excess cash before Vodacom becomes a shareholder. If this happens, Vodacom’s purchase of the additional shares would be for R1.2 billion, not R2.5 billion.

Here’s another complication: so much time has passed since the 2021 announcement that Maziv acquired 49.96% in Hero Telecoms, which means Vodacom needs to cough up for its 30% share of that stake as well. This comes to R0.6 billion in cash. Maziv is looking to acquire almost all the remaining shares in Herotel, in which case Vodacom could be on the hook for a further R0.8 billion in cash.

A further change is that Vodacom’s original option to acquire up to an additional 10% in Maziv has now been changed to 4.95%. In other words, at a value to be agreed at the time (and not less than the valuation of the current transaction), Vodacom would be able to increase its stake to 34.95%. Notably, the only party that would be diluted by the exercise of this option is Remgro, not the other shareholders in CIVH.

So, some tweaks here and there to allow for the passage of time, along with a reduction in Vodacom’s potential overall stake. Roll on 22nd July…

Nibbles:

  • Director dealings:
    • The CEO of Vunani (JSE: VUN) bought shares worth R87.6k.
    • A director of a subsidiary of Capital Appreciation (JSE: CTA) sold share awards worth R48.7k. The announcement doesn’t specify whether this is the taxable portion, so I assume it isn’t.
  • Generally speaking, 4Sight Holdings (JSE: 4SI) is a small company that behaves like a big company. The latest news is that they are acquiring properties that they currently occupy from the CEO. Now, on the one hand, this removes a related party relationship. But on the other, it means that R23.65 million will be invested in property, an asset class that theoretically offers much lower returns than 4Sight needs to be achieving. But the silver lining is that they are saving R4.5 million in annual lease payments, so they are buying it on a yield of 19%. The property was independently valued at R22.8 million (and they are getting it for R21.66 million, as R1.99 million is for furniture and fixtures), so the company is buying the property at slightly below market value. The effective yield is so high that it seems as though the company was paying far too high a rental, so I’m glad to see this being cleaned up.
  • Sable Exploration and Mining (JSE: SXM) terminated CM&A as its auditors and has replaced them with Balushi Inc. At that end of the market, you’ll find auditors that you’ve probably never heard of before.

Ghost Bites (AECI | Redefine)

The Finance Ghost
-
0
Ghost Bites (AECI | Redefine)

AECI announces a few asset disposals (JSE: AFE)

This includes the sale of Schirm USA to its management team

AECI is in the process of simplifying its group and focusing on AECI Mining and AECI Chemicals, which means they are selling everything else unless there are obvious synergies. The market tends to like this kind of thing, as groups with unfocused portfolios are often underperformers. This is why AECI closed 5.5% higher after announcing a few disposals.

The major disposal is Schirm U.S.A. that they are selling to the management team on that side of the pond. Management’s special purpose entity for the acquisition is called Liberation Chem-Toll and they are in Texas, so the stars and stripes are all over this thing. Despite having net assets of R994.5 million as at December 2024, attributable profit was a very sad R9.4 million.

Somehow, AECI managed to sell it for R1.074 billion, a price that probably reflects an uptick in net assets in the past six months. It’s an insane earnings multiple and I’m pretty sure that the AECI execs had to be careful not to rip the counterparty’s arms off when shaking hands for the deal, such is the exuberance.

R716 million is in cool, hard cash. The remaining R358 million is in the form of seller notes, a structure that is more common overseas than in South Africa. Basically, the seller agrees to be paid over a period of time, with the legal form being a promissory note. Deferred payments are common here, but we don’t usually see reference to some kind of promissory note. There’s also an adjustment of up to R72 million for working capital changes.

There are a few conditions that need to be met, but this is a small deal by US standards and there’s no nonsense here in terms of difficult regulatory approvals.

That’s not all, folks.

AECI also announced that Schirm Germany found buyers for Baar-Ebenhausen, one of the three key facilities in the German business. It focuses on formulation, filling and packaging operations for agrochemicals and specialty chemicals. This is one of those “pay them to drag it away” situations, with Schirm Germany transferring €500k to cover environmental liabilities and benefitting from a saving of €3 million on future restructuring and other costs.

And finally, AECI has found a South African buyer for the local food and beverage business. This must be a small deal, as they purely mention the disposal on a voluntary basis and they don’t really give further details.

Here’s the big that investors will want to keep an eye on: AECI notes that they are “satisfied” with their current debt levels and business performance and have “begun exploring inorganic growth opportunities” – I’m not sure that jumping straight into new acquisitions is what the market will want to see.

Redefine sells Rosebank Corner (JSE: RDF)

Weak office leasing prospects mean that a residential conversion is coming

This is a small deal, but an interesting one nonetheless. Redefine is selling Rosebank Corner on Jan Smuts Avenue for R80 million. They will use the proceeds to repay debt. But what makes this worth looking at is that the property will be rezoned for residential purposes and that this rezoning is what will trigger the effective date for the deal.

The value on Redefine’s balance sheet as at February 2025 was R91.5 million, so the disposal price is quite a discount. This is because of the residential conversion costs, as the original valuation assumed that the property would be successful in its current form i.e. as an office.

So, this tells us that the office market still has serious problems, especially in Joburg.

There’s also a related party angle to the deal, as one of the independent non-executive directors of Redefine is the sole director of the purchaser and a minority shareholder in its holding company. The deal is so small for Redefine that even the related party angle doesn’t trigger any additional disclosure or approval requirements.

Nibbles:

  • Director dealings:
    • Here’s an unusual one: Hendrik du Toit bought shares in Ninety One plc (JSE: N91) worth just under R7 million and sold shares in Ninety One Limited (JSE: NY1) worth R14 million. So that’s not just a reshuffling of geographical entry point into the dual-listed structure, but a net sale of shares.
    • Two executive directors of Emira Property Fund (JSE: EMI) received share awards and sold the whole lot worth over R6.6 million.
    • A non-executive director of Richemont (JSE: CFR) bought shares worth just over R1 million.
    • The CFO of Spear REIT (JSE: SEA) bought shares worth R102k.
    • The CEO of Vunani (JSE: VUN) bought shares worth R32k.
  • Trencor (JSE: TRE) has now received the JM12 certificate from the Master of the High Court, which means that the special dividend and delisting of the company can now go ahead. The listing will be terminated on 5 August.
  • Acsion (JSE: ACS) is no longer trading under a cautionary announcement, as discussions regarding a potential acquisition have been called off.
  • Primary Health Properties (JSE: PHP) confirmed that they’ve repaid their £150 million guaranteed convertible bonds. This is a disclosure requirement under UK takeover law, in which they are confirming that their only relevant class of securities is now ordinary shares.

Who’s doing what this week in the South African M&A space?

Marylou Greig
-
0
Who’s doing what this week in the South African M&A space?

Exchange-Listed Companies

In line with its strategic shift to focus on its mining and chemical businesses, AECI has announced three disposals. German subsidiary Schirm GmbH will dispose of the assets of Schirm USA to Liberation Chem-Toll, a Texan company established by the management of Schirm USA, for a disposal consideration of US$60 million (R1,07 billion). In a further disposal Schirm has entered into a sale agreement with German-based private buyers to dispose of Baar-Ebenhausen which is focused on contract manufacturing services for both agrochemicals and specialty chemicals. Schrim will transfer €500,000 to cover environmental liabilities. Closer to home, AECI will dispose of its Food and Beverages business to a consortium comprising a local-based private equity fund. The purchase consideration payable in terms of transaction is based on a cash price at closing date, with a capped potential adjustment for working capital movements.

AngloGold Ashanti is to acquire Canadian Augusta Gold from shareholders at a price of C$1.70 per share in cash. This implies a fully diluted equity value of C$152 million (US$111 million) and represents a 28% premium to the closing price on 15 July 2025. In addition, AngloGold Ashanti will provide funds of c.US$32,6 million, for the repayment of certain stockholder loans. The Augusta Gold Board has unanimously approved and recommended the transaction to its shareholders. The deal is expected to close in the fourth quarter of 2025.

Rosebank Corner has been sold by Redefine Properties to Live Rosebank in a deal valued at R80 million. The disposal is in line with Redefine’s strategy to recycle non-core assets to improve the quality of its asset platform and lower its loan to value ratio.

Supermarket Income REIT plc has acquired a Tesco omnichannel supermarket in Ashford, Kent for £54,1 million reflecting a net initial yield of 7.01%. The acquisition is the first transaction for the company since its recently announced joint venture with funds managed by Blue Owl Capital.

Labat Africa has entered into negotiations with All Trading, a related party, for the disposal of Labat’s equity interests in some of its subsidiaries. Further details will be released in due course.

In its latest update, Primary Health Properties plc (PHP) says it has received valid acceptances for c.1.18 % of Assura shares under the revised offer. Assura shareholders have until 12 August 2025 to accept the offer. In addition, the company says it has received foreign direct investment clearance in Ireland. Meanwhile, the Assura Board has unanimously recommended that Assura shareholders take no action in respect of their shares in relation to the Sana Bidco (Kohlberg Kravis Roberts and Stonepeak Partners) offer.

Unlisted Companies

MoneyBadger, a South African Bitcoin and crypto payment solutions provider, has closed a US$400,000 pre-seed funding round. The raise was led by P1 Ventures and angel investors. The round was partly funded in Bitcoin and will be used to drive up adoption of Bitcoin and crypto among local merchants.

DealMakers is SA’s quarterly M&A publication.
www.dealmakerssouthafrica.com

Weekly corporate finance activity by SA exchange-listed companies

Marylou Greig
-
0
Weekly corporate finance activity by SA exchange-listed companies

In connection with the continued implementation of its repurchase programme, Prosus has sold 371,000 Tencent shares, reducing its shareholding to 22.996%.

On 28 July 2025 MTN Zakhele Futhi will distribute R2,47 billion to shareholders in the form of a special distribution of R20 per share as part of the structure unwind. The amount of the residual NAV will depend on the price at which the remaining 2,48 million MTN ordinary shares held will be disposed of in the market. Thereafter, MTNZF will delist from the JSE.

Following the announcement in May by Accelerate Property Fund (APF) of a proposed rights offer to raise R100 million, the offer opened this week. The capital raise is underwritten, and proceeds will be used in restructuring efforts with a focus on Fourways Mall, APF’s largest asset.

Assura shareholders will receive a special dividend of up to a maximum of 0.84 pence per Assura share in lieu of and representing an acceleration of the quarterly interim dividend otherwise expected to be paid during October 2025. There will be no scrip dividend alternative and Primary Health Properties previously confirmed that the special dividend will not reduce the value of its revised offer. Payment will be made on 26 August 2025.

The JSE has notified shareholders of African Dawn Capital and Efora Energy that these companies have failed to publish their financial statements for the year-ending 28 February 2025 within the prescribed period stipulated by the JSE Listing Requirements. As a result, the listings have been suspended with immediate effect.

The voluntary winding-up of Trencor is in the final stages and shareholders are advised that the company’s shares will be suspended on the JSE from 30 July 2025 and its listing terminated on 5 August 2025. The special dividend of 90 cents per share (from remaining cash resources) will be distributed to shareholders on 1 August 2025.

Name changes – this week three companies released updates:

Subject to shareholder approval, the Board of Blue Label Telecoms has proposed to change the company’s name to Blu Label Unlimited. The company is undergoing a restructuring process which will see the separation of its telecoms and non-telecoms business units. The company will however remain listed in the Telecoms sector of the JSE. Shareholders will vote on the change on 11 August 2025.

Mantengu Mining aims to drop Mining from its name believing it is misleading and does not accurately reflect the current investments held by the company nor its prospective investment philosophy. Shareholders will be asked to approve the name change at the Annual General Meeting on 21 August 2025.

HomeChoice International will trade as Weaver Fintech from 23 July 2025. The growth of the group’s fintech business is such that it is now the primary driver of group performance and profit before tax. The new name better represents the core operations.

This week the following companies announced the repurchase of shares:

In May 2025 Tharisa plc announced it would undertake a repurchase programme of up to US$5 million. Shares have been trading at a significant discount, having been negatively impacted by the global commodity pricing environment, geo-political events and market volatility. Over the period 7 to 11 July 2025, the company repurchased 40,496 shares at an average price of R20.6475 on the JSE and 260,443 shares at 85 pence per share on the LSE.

Glencore plc will undertake a further share buy-back programme to acquire shares of an aggregate value of up to US$1 billion. The shares will be repurchased on the LSE, BATS, Chi-X and Aquis exchanges and is expected to be completed in February 2026. This week 5,400,000 shares were repurchased at an average price of £3.11 per share for an aggregate £13,98 million.

Hammerson plc continued with its programme to purchase its ordinary shares up to a maximum consideration of £140 million. The sole purpose of the buyback programme is to reduce the company’s share capital. This week the company repurchased 199,917 shares at an average price per share of 289 pence for an aggregate £579,430.

In May 2025, British American Tobacco plc extended its share buyback programme by a further £200 million, taking the total amount to be repurchased by 31 December 2025 to £1,1 billion. The extended programme is to be funded using the net proceeds of the block trade of shares in ITC to institutional investors. This week the company repurchased a further 488,397 shares at an average price of £37.77 per share for an aggregate £18,47 million.

During the period 7 to 11 July 2025, Prosus repurchased a further 1,882,892 Prosus shares for an aggregate €89,86 million and Naspers, a further 144,996 Naspers shares for a total consideration of R796,34 million.

Two companies issued profit warnings this week: ArcelorMittal South Africa and Mpact.

During the week three companies issued or withdrew cautionary notices: Conduit Capital, Labat Africa and Acsion.

DealMakers is SA’s M&A publication.
www.dealmakerssouthafrica.com

Who’s doing what in the African M&A and debt financing space?

Vanessa Aitken
-
0
Who’s doing what in the African M&A and debt financing space?

DealMakers AFRICA

Morocco’s ORA Technologies has closed a US$7,5 million Series A funding round led by Azur Innovation, who were joined by three local investors. The ORA app offers multiple features, including P2P transactions, an e-commerce platform, on-demand services, chat functionality, social networking, and a digital wallet to be launched soon.

Sahel Capital through its Social Enterprise Fund for Agriculture in Africa (SEFAA) has provided Kenyan fish processing and distribution company, Camino Ruiz, with a US$1 million loan facility comprising US$800,000 for capital expenditure and US$200,000 for working capital. Camino Ruiz has established itself as Kenya’s first consumer-focused fish brand through a strategic partnership with Global Tilapia Husbandry (GTH), securing a reliable supply of high-quality Tilapia. The company processes this into a range of value-added products under its flagship brand, Global Tilapia.

Vicenne, a medical equipment and healthcare services firm backed by private equity firm Amethis, listed on the Casablanca Stock Exchange on 15 July following an initial public offering which was 64 times oversubscribed. The company offered 2,1 million new shares at MAD236 each.

Egyptian fintech, Palm, has announced an undisclosed seven-figure pre-seed funding round led by 4DX Ventures and included Plus VC and a number of international angel investors. Palm enables users to save for life goals using smart nudges, embedded finance, and curated investments across fixed income, equities, and precious metals. It also offers exclusive merchant deals to boost savings value and reduce spending.

Verdant Capital Hybrid Fund has provided Bfree with a US$3 million loan for distressed loan portfolios from inclusive financial institutions in Africa. Established in 2020, Bfree is an ethical and digital credit collection company.

King V and the future of corporate governance in South Africa

Merlita Kennedy and Pooja Dela
-
0
King V and the future of corporate governance in South Africa

Advancing ESG and business and human rights

Corporate governance in South Africa has evolved significantly over the past three decades, with the King Code playing a central role in shaping responsible and sustainable business practices. In an era where environmental, social and governance (ESG) and business and human rights (BHR) considerations are no longer optional, but fundamental to corporate success, the release on 24 February 2025 of the draft King V Code on Corporate Governance by the Institute of Directors in South Africa (IoDSA) for public comment marks a pivotal moment.

This article briefly examines some of the key changes proposed in King V, particularly from an ESG and BHR perspective. It also acknowledges that the King Codes have, over the years, come under scrutiny, including the current draft, with concerns raised around their utility and effectiveness.

King V refines corporate governance by incorporating modern sustainability principles, streamlining its structure, and making governance guidance more accessible. Most notably, the inclusion of key terms such as “impact,” “impact materiality,” “Ubuntu,” and the updated definitions of “sustainability” and “value creation” signal a shift towards embedding ESG and BHR considerations into South Africa’s corporate governance framework.

The emphasis on impact and impact materiality reflects a move towards requiring businesses to assess not only how external factors affect their financial performance, but also how their operations affect society and the environment. The explicit recognition of Ubuntu — a philosophy centred on interconnectedness and human-centric values, including ethical responsibility — introduces a uniquely South African dimension to governance, reinforcing stakeholder accountability and social cohesion as core business principles.

Meanwhile, the refined definitions of sustainability and value creation underscore that corporate success is no longer measured solely in financial terms, but also in broader contributions to social, environmental and economic well-being.

These updates bring King V in closer alignment with global governance trends, while ensuring South African businesses prioritise human rights, ethical leadership and long-term sustainability as part of strategic decision-making. This evolution marks a departure from traditional compliance-based governance, placing ESG and BHR firmly at the heart of corporate responsibility and value creation.

King V’s evolution: A streamlined and impact-focused governance framework

Since its inception, the King Code has shaped South African corporate governance through progressive updates that reflect global trends, while remaining tailored to the country’s constitutional values and socio-economic context. A defining feature of King IV (2016) was its introduction of the “apply and explain” principle, requiring companies to demonstrate how they apply governance principles rather than merely confirming compliance. How this principle will be interpreted and whether substantive explanations will be required remains to be seen.

King V builds on this principle with several refinements:
Simplified structure – the number of principles has been reduced from 17 to 12, enhancing clarity and ease of application.

Enhanced accessibility – the Code is now presented as a single, stand-alone document, reducing the need for extensive cross-referencing.

Greater emphasis on transparency – the Code encourages proportionality and adaptability to ensure governance practices align with an organisation’s size, structure and complexity.

The inclusion of a formal glossary in King V underscores its commitment to clarity, transparency and accountability, particularly regarding ESG and BHR considerations.

The executive summary of fundamental concepts published with the draft King V Code notes: “King V advocates integrated thinking which takes account of the combination, connectivity, and interdependencies between the range of factors that affect an organisation’s ability to create value over time. The necessity for integrated thinking is apparent when one acknowledges that all organisations function as integral and embedded components of the economy and society in which they exist. In turn, organisations and the economy, as well as other social systems, are integrated and embedded parts of the natural environment upon which these entirely depend. As a consequence of this integration or embeddedness, organisations affect and are affected by the health of society and the planet”.

It further states: “Integrated thinking operates as a thematic strand across the diverse domains or subject matter of governance that the Code encompasses: ethics and corporate citizenship, strategy and performance, reporting, governing body composition, governing body committees, delegation, risk and compliance, information and technology, remuneration, assurance, and stakeholder relationships. Where principles and practice recommendations in the Code refer to the economic, social, and environmental context within which the organisation operates or, from a more granular perspective, to the relationships and resources that organisations utilise and influence, these denote integration.”

What this means for businesses

King V aligns with the global shift towards recognising that companies can no longer focus solely on shareholder value. They must assess, disclose and manage their broader societal and environmental impacts. Sustainability is no longer a “nice-to-have” — it is a governance imperative.

Businesses must integrate sustainability into strategy, risk management and operations, rather than treating it as a separate compliance function. The inclusion of Ubuntu localises corporate governance within South Africa’s cultural and ethical framework. Companies are encouraged to adopt stakeholder-centred decision-making, reinforcing values such as community, respect and ethical leadership.

Value creation must now be holistic, considering financial, social and environmental returns. Organisations must define and measure success not only by profits, but by their positive contribution to society and the planet.

That said, the balancing act between profitability and operationalising ESG and BHR should not be underestimated. Business is a key driver of economic growth, and regulatory changes must not result in undue bureaucratic burdens. How these proposed changes will be implemented remains to be seen. It will also be important to monitor how the business sector responds and how ESG and BHR considerations are practically embedded in governance.

Why King V matters for South African business

The draft King V Code represents a potentially transformative step in South Africa’s corporate governance journey, though not without criticism, including claims that the Code serves as a political placeholder to signal compliance without necessarily driving change. By refining governance principles, emphasising impact-focused strategies, and embedding sustainability and ethical responsibility into its framework, King V aims to ensure that South African businesses remain globally competitive and accountable to their local communities and stakeholders – futureproofing their operations as a result. King V attempts to bridge the gap between traditional governance and modern ESG and BHR expectations, helping South African businesses become more resilient, responsible and relevant. As King V remains open for public comment, organisations should actively engage with the draft Code to ensure the final version reflects international best practice, the unique governance needs of South Africa, and importantly, is practical and implementable.

The King Code had long set the benchmark for corporate governance in South Africa. With King V, the country has an opportunity to lead globally by balancing financial success with ethical, social and environmental responsibility.

Businesses that embrace this evolution will not only future-proof their operations, but also build stronger stakeholder relationships and drive long-term, sustainable value.

Merlita Kennedy and Pooja Dela are Partners | Webber Wentzel

This article first appeared in DealMakers, SA’s quarterly M&A publication.

DealMakers is SA’s M&A publication.
www.dealmakerssouthafrica.com

Ghost Bites (AngloGold | Coronation | Mpact | Richemont)

The Finance Ghost
-
0
Ghost Bites (AngloGold | Coronation | Mpact | Richemont)

AngloGold pushes deeper into the US market with another acquisition (JSE: ANG)

They are acquiring Augusta Gold in a R2 billion deal

AngloGold recently moved its primary listing from the JSE to the New York Stock Exchange (NYSE). It remains listed on the JSE so that South African shareholders can continue to invest in the stock without any difficulties, but having a primary listing in the US is a clear sign of intent around global growth ambitions.

Speaking of growth, the company has announced another acquisition in the US market. They have agreed to acquire Augusta Gold in a deal worth nearly R2 billion. Augusta Gold is listed in Toronto, so the price is expressed in Canadian dollars. They are paying C$1.70 per share, a premium of 28% to the closing price on 15 July and 37% to the 20-day VWAP. The purchase price is being settled in cash.

The appeal here is that Augusta Gold’s assets are in the Beatty District in Nevada. They are also adjacent to AngloGold’s existing assets in the area, so they are consolidating their interests in that space and adding to their mineral resources.

Ultimately, by seeking gold assets in a region like the US, AngloGold is hoping to increase its valuation. Whether we like it or not, investors are more likely to pay up for gold assets in the US than in South Africa, as the regions have very different risk premiums.

Unless Trump starts trying to fire every Fed chair who doesn’t want to drop interest rates, that is.

A huge upswing in AUM at Coronation (JSE: CML)

The markets have thrown them a bone

The story at Coronation in recent times has been one of disappointing flows and management blaming things like South Africa’s poor savings culture, while competitors with advice-led businesses go out there and hunt for assets with success.

The good news for Coronation shareholders is that although I doubt the situation with flows has changed much, recent market performance has led to a substantial jump in assets under management (AUM), the basis upon which Coronation earns a living.

AUM was R737 billion as at June 2025. Coronation never ever gives comparable numbers in the same announcement (even when they’ve done well), so we have to go digging through SENS to find them. The June 2024 number was R632 billion, so they are 16.6% higher over 12 months. The March 2025 number was R676 billion, so they are 9% higher over three months.

Now, if only the trend around inflows would change! But I doubt that will happen without management investing in distribution, something they seem unwilling or unable to do.

Rough news for investors in Mpact: profits have moved sharply lower (JSE: MPT)

The plastics business dragged them down

Mpact has released a trading statement dealing with the six months to June 2025 and I’m afraid it’s not for good reasons. Brace yourself: HEPS from continuing operations is expected to be between 18.2% and 28.0% lower. And for total operations, the expected drop is between 30.8% and 39.1%. Ouch!

The paper business achieved revenue growth of 7% thanks to higher containerboard sales volumes in both the local and export markets, partially offset by lower cartonboard and corrugated sales volumes due to weak demand. But even this growth wasn’t good enough, as cost and margin pressures drove a decrease in operating profit.

The plastics business suffered a drop in revenue of 15%, with FMCG Wadeville struggling to replace volumes lost after expiry of two contracts with a major customer. There was also seasonal pressure in Bines & Crates, which should ease in the second half. Although Mpact doesn’t explicitly say it, profit is surely down significantly in this segment.

With group EBITDA down by 15% and underlying operating profit by 26%, HEPS never really stood a chance. The only highlight here is that net debt has reduced from R3.23 billion to R2.985 billion.

Detailed results are due for release on 4 August, at which point investors will know the full extent of the pain. The Mpact share price has lost 17% this year.

Sales are up at Richemont – but not by much (JSE: CFR)

They refer to 3% growth as a “solid start” to the year

The quarter ended June 2025 is the first quarter of Richemont’s financial year. They got off to a positive start at least, with group sales up 3% as reported and 6% in constant currency terms. Hardly a rocket to the moon, but in the green.

The trends in the underlying segments is fascinating. The Jewellery Maisons were up 11% in constant currency, while Specialist Watchmakers fell 7%. The “Other” bucket (which is nearly as big as Specialist Watchmakers these days) fell 1% in constant currency.

The regional story is also interesting. Asia Pacific finally bottomed out in terms of flat constant currency sales and a decrease of 4% as reported Although there was a 7% decline in China, Hong Kong and Macau, other Asia Pacific markets picked up that slack. The next largest segment is Americas, up 17% in constant currency and 10% as reported. Then we get Europe, up 11% (on both metrics as the reporting currency is the euro). Japan had a rough time vs. a very high base, with sales down 15% in constant currency and 13% as reported. Finally, Middle East & Africa was up 17% as reported and 11% in constant currency, with the United Arab Emirates as the unsurprising bright spot there.

As you can see, the currency is making quite a difference. A world of dollar weakness and euro strength isn’t ideal for Richemont.

On the balance sheet, net cash was €7.4 billion, only slightly up from €7.3 billion due to the YNAP transaction that was completed in April 2025. They’ve finally sold that messy thing to Mytheresa, although they had to put in more cash to make that happen and they now have a 33% stake in Mytheresa.

Richemont’s share price is up roughly 20% year-to-date.

Nibbles:

  • Director dealings:
    • The CEO of Vunani (JSE: VUN) bought shares worth R6k. This sounds like a silly number in isolation, but there has been a string of recent purchases.
    • And speaking of silly numbers, a prescribed officer of Acsion (JSE: ACS) sold shares worth R612.50. I’ll include the 50 cents for the fun of it.
  • In further egg on the faces of the Assura (JSE: AHR) board regarding the offer they chose to back, the letters from the employee representative show that employees are more concerned about the merger with Primary Health Properties (JSE: PHP) than KKR and Stonepeak. That’s not surprising, as a merger is far more likely to lead to job losses. Tell me again about how that merger is likely to be a net positive for investors vs. just taking a cash offer?
  • Visual International (JSE: VIS) released results for the year ended February 2025. This is a penny stock (it closed 50% higher at R0.03, mainly because that’s the only increment higher than the previous close of R0.02), so it only gets a mention down here. Beware: they are looking to raise capital through a bookbuild that they will propose at the AGM, so dilution is coming. The company is so small that revenue was just R1.8 million, while the loss before tax was R2.3 million. HEPS was 0.39 cents per share. There are also a whole bunch of related party balances going on here. It needs a lot of cleaning up.
  • Numeral (JSE: XII) released numbers for the quarter ended May 2025. This period includes the 51% interest in Cryo-Save South Africa, as well as the 51% in Longevity Lab and a short period of ownership of the 40% in Isopharm. In other words, the comparable numbers aren’t useful. Revenue was $543k and net profit after tax was $75.7k, so this obscure Mauritian structure is now generating positive earnings. There’s very little trade in this stock and it remains a penny stock of note (currently trading at R0.02), but maybe they will actually manage to turn it into something.
  • Supermarket Income REIT (JSE: SRI) has completed the transfer of its listing from the closed-end investment funds category to the equity shares category on the London market. This may sound like just a housekeeping thing, but it makes quite a difference in terms of index tracking funds and the mandates of institutional investors.
  • In the incredibly unlikely event that you’re a shareholder in Globe Trade Centre (JSE: GTC), you’ll be interested to know that the company has exercised a call option to acquire a residential portfolio. They are funding this with a combination of own cash resources and a loan to the company.

Ghost Bites (Assura – Primary Health Properties | Labat Africa | MC Mining | Ninety One | Orion Minerals | Southern Palladium)

The Finance Ghost
-
0
Ghost Bites (Assura – Primary Health Properties | Labat Africa | MC Mining | Ninety One | Orion Minerals | Southern Palladium)

Assura releases the response document to explain why they turned away from KKR / Stonepeak (JSE: AHR)

Just finding the document on their website is half the battle won

Takeover processes are highly regulated things. Boards are required to issue various important documents. Under UK law, the Assura board was required to issue a response letter dealing with their views on the KKR / Stonepeak. And if you spend half your life scrolling down on this page, you’ll even find that document.

As a reminder, the KKR / Stonepeak offer came to an effective 52.1 pence per share, which is a 39.2% premium to the price on 13 February 2025 (the day prior to the commencement of the offer period). Based on the latest available prices, this bid is a discount of a laughably small 0.7% to the implied value of the Primary Health Properties (JSE: PHP) offer.

If you’ve been paying attention to Ghost Bites recently, you’ll know that the acceptance rate by Assura shareholders of the Primary Health Properties offer is very low.

In my view, this is for three reasons. Firstly, the KKR / Stonepeak offer is a cash offer at almost the same implied price, without the volatility of a share-based offer where the implied value changes every day. Secondly, the Primary Health Properties offer comes with plenty of merger risk, whereas the KKR / Stonepeak offer is a clean break. Thirdly, KKR / Stonepeak exercised their right to switch from a scheme to a takeover offer, which means that shareholders can choose to accept that offer instead.

Funnily enough, as there were directors of Assura who gave irrevocable undertakings to KKR / Stonepeak to accept their offer, they are still bound by those undertakings! This comes to only 0.1% of Assura’s shares in issue.

As I’ve said throughout this process, the Assura board’s decision to switch to a recommendation of the merger rather than the cash deal simply doesn’t make sense. The arguments are based on the benefits of a “larger and more efficient REIT” (words that don’t tend to go together) and enhanced visibility. But again, this is all fluff, whereas KKR and Stonepeak have put cold, hard cash on the table.

My guess is that the Primary Health Properties bid is going to fail and that shareholders will act against the recommendation of the board by accepting the KKR / Stonepeak bid. Let’s see what happens.

As an aside, the accelerated dividend that has been part of all the bid calculations has now been declared. It will only be paid if the Primary Health Properties offer becomes unconditional though, so don’t hold your breath.

Labat Africa might dispose of some businesses (JSE: LAB)

They are in discussions with a company called All Trading

Labat Africa is going through significant changes. They’ve now released a cautionary announcement regarding a potential disposal of “some” of their subsidiaries, with the counterparty being All Trading (Pty) Ltd.

There are no further details at the moment. One would have to assume that they are looking to get rid of legacy assets, leaving them to focus entirely on the new push into the technology sector.

MC Mining decided to use SENS as a PR tool (JSE: MCZ)

Points for creativity, I guess

If there’s one thing that small listed companies love doing, it’s using SENS as a public relations distribution tool. You don’t see it too often thankfully, as the JSE tends to clamp down on this behaviour when it gets out of line. Every now and then though, you’ll see some pomp and ceremony coming out on SENS.

MC Mining is a perfect example. They released an announced with this title: “MC Mining’s steel making coal strategy enters new growth phase through reimagined Uitkomst Colliery” – reimagined, nogal.

The TL;DR is that Uitkomst Colliery is now implementing a revised turnaround plan. Metalla Tutum Engineering has been appointed to assist with this, in case that means anything to you. Aside from reworking the mining layouts, they are reducing headcount from 430 to 366, with “minimal forced retrenchments” – so some of this reimagining will be people reimagining where they earn their wages.

Full marks to the PR company, with the share price closing 15% higher after basically telling the market that their asset is broken and they need to retrench people.

Ninety One’s AUM has moved higher (JSE: N91 | JSE: NY1)

And yes, this is the case even after adjusting for the Sanlam deal

Ninety One announced its assets under management (AUM) as at 30 June 2025. This is the first quarter of the 2026 financial year. AUM is the key metric for this group as it forms the basis upon which they earn management fees.

AUM was £139.7 billion, up from £128.6 billion as at June 2024 and £130.8 billion as at March 2025. This includes £1.9 billion from the transfer of Sanlam Investments UK’s active asset management business. The South African tranche of that transaction is still to follow.

If we split out that bump, then growth over 12 months in AUM is 7.2% and over 3 months is 6.8%. In other words, it was a strong quarter!

They don’t give any information on the extent to which this was driven by net flows vs. changes in overall asset pricing. That’s the real test of success in the asset management game.

Orion presses the green button on its share purchase plan (JSE: ORN)

We desperately need to see more of this on the JSE

Orion Minerals does things the right way when it comes to capital raising. They need to raise chunky amounts from strategic investors for their mining projects, but they also give the little guy a chance by allowing retail investors to get more shares at the same price as the strategic investors. In a world where companies do accelerated bookbuilds at a discount to institutional investors, while retail investors are left out in the cold, this is great to see.

The latest such plan allows shareholders to subscribe for shares in parcels from A$170 to A$30,000 (roughly R2,000 to R355,000). The issue price is 1.1 AUD cents per share or R0.13 per share, which is in line with the current share price of R0.14. The offer applies regardless of how many shares each eligible shareholder currently holds, so this is very different to a rights issue.

The raise from strategic investors will add equity of around R67 million to the balance sheet, some of which is from loan conversions. The share purchase plan could be as large as R46 million, although I’ll be surprised if they get to a number of that size. The funds raised will be used to develop the Prieska Copper Zinc Mine and the Okiep Copper Project.

Here’s the “catch” – the offer is only open to eligible shareholders, which means those who were already in the register on the record date of 7th July. In other words, you can’t buy shares now to take part in the offer.

The offer is now open and will close on 5 August 2025. I hope they raise a meaningful amount!

Southern Palladium has released a presentation with their optimised prefeasibility study (JSE: SDL)

It includes some pretty interesting charts

Southern Palladium recently announced the staged plan in its optimised prefeasibility study. As I wrote at the time, the goal is always to maximise the internal rate of return (IRR) and minimise the maximum capital requirement. Achieving this often requires a phased approach.

The company has made its roadshow presentation available, including some charts that show you what that phased approach looks like:

The expected post-tax IRR for stage 1 is 21.8% and for stage 2 is 26.4%. The peak funding requirement is $279 million, which is 38% less than they estimated in the prefeasibility study.

The deck also includes this slide showing the main suppliers of each of platinum, palladium and rhodium, along with the sources of demand:

You’ll find the presentation here.

Nibbles:

  • Director dealings:
    • An executive of Investec (JSE: INL | JSE: INP) sold shares worth R941k. The announcement doesn’t specify that this was the taxable portion of an award, so I assume that it wasn’t.
    • A director of a major subsidiary of PBT Group (JSE: PBG) bought shares in the company worth R74.5k.
  • Vukile Property Fund (JSE: VKE) has finished winding up the share purchase plan that was previously put in place for executives. This frees up R280 million in capital to deploy into other opportunities. Although this led to vast amounts in director dealings, these aren’t sales in the traditional sense i.e. they don’t tell you anything about the current level of the share price.
  • There’s a rather unusual announcement by enX (JSE: ENX) regarding three minority shareholders coming onto the register. Lockstock Investments now holds 7.07% of enX’s shares, Berkeley Capital has 5.22% and Skilgannon CC has 6.66%. I’m struggling to find any other information on these entities, including whether they are the counterparties for any of the recent corporate actions. I would keep an eye on this, as it’s not the norm to see a register churn like this as part of the ordinary course of trade in the shares.
  • Lewis Group (JSE: LEW) announced that Global Credit Ratings (GCR) affirmed its long- and short-term national scale issuer ratings at A+(ZA) and A1(ZA) respectively. Importantly, the outlook has been improved from Stable to Positive. This is informed by both the recent trading performance and the strength of the balance sheet. With Lewis having such a focus on credit sales, access to affordable debt (assisted by a strong credit rating) is key to the business model. So, this is good news!
  • HomeChoice’s (JSE: HIL) change of name has met all approval requirements and will become effective from 23 July. The new share code will be JSE: WVR.
  • It turns out that MTN Zakhele Futhi (JSE: MTNZF) didn’t need approval from the SARB for the special distribution that will pay R20 per share to investors. That’s a return of almost all of the current value of the company, with another R2 – R3 per share to go.
  • In case you were wondering what’s happening at Conduit Capital (JSE: CND) – and I know you you probably weren’t – the company has renewed its cautionary announcement. There’s no real update here, with the company still engaging with the liquidator of CICL and needing to publish financials for the year ended June 2023.

Ghost Bites (ArcelorMittal | Mantengu Mining | South32 | Supermarket Income REIT | Tharisa)

The Finance Ghost
-
0
Ghost Bites (ArcelorMittal | Mantengu Mining | South32 | Supermarket Income REIT | Tharisa)

ArcelorMittal’s longs business is still likely to close (JSE: ACL)

Despite the social cost, there just doesn’t seem to be an economic solution

It’s an ugly thing unfortunately, but sometimes businesses fail. When small towns rely on them, those towns fall on very hard times. As much as everyone would like to avoid these realities, they are a part of life.

The frustration when it comes to ArcelorMittal is that it feels like the longs business is mainly a casualty of years of bad government policies and execution in South Africa, with only some of the blame lying with disruption in the market and other economic factors.

For example, poor rail service is 100% a failing of government, with ArcelorMittal noting that Transnet’s performance has deteriorated to its lowest levels ever (that’s a very different tune to what the coal companies have been singing lately). Weak domestic demand in construction is thanks to years of disappointing economic growth and deterioration in most regions in South Africa, leading to low confidence levels among property investors and businesses willing to take on projects.

There are other factors mentioned by the company, like the Preferential Pricing System and export tax on ferrous scrap that favours scrap-based steel makers rather than integrated steel makers. I don’t know anywhere near enough about the industry to have a view on that, so I’m just telling you what the company mentioned here.

The list goes on. There are insufficient import protections and it seems to be too easy for local companies to dodge the tariffs that are in place. And speaking of tariffs, our electricity tariffs are described by ArcelorMittal as being “globally uncompetitive” – again, I can’t comment on the validity of that claim in terms of industrial electricity costs.

If these problems sound hard to solve, that’s because they are. Back in March, ArcelorMittal announced that they would wind-down the longs business. The IDC then stepped in with a R1.7 billion facility to try keep things going while they figure out what to do. All this capital has been devoured and there’s still no solution for the business.

ArcelorMittal simply cannot keep this business going, or the entire group will collapse. For the six months to June, they expect a headline loss per share of R0.89 to R0.99, which is practically no improvement from the headline loss per share of R1.00 in the comparable period.

Sure, there are some external macroeconomic factors here, like a substantial increase in exports from China due to weak domestic demand in that region. When the global market is being flooded and South Africa has a combination of weak domestic demand and poor protections for the current industry (the estimate is that imports are more than 35% of local steel consumption), there’s really only one outcome. The IDC putting a R1.7 billion plaster on such a gaping wound is just throwing good money after bad.

It’s very hard to see how they will avoid closing this business this year.

Mantengu Mining wants you to know that it isn’t just a mining company (JSE: MTU)

A planned change of name will drop the word “mining”

Mantengu is certainly one of the more colourful companies on the JSE. After getting themselves into trouble with the exchange, they’ve stopped making wild accusations about share price manipulation. They also decided to change their Designated Advisor recently without really explaining to the market why they did it. There’s never a dull moment at Mantengu and the market tends to keep its distance.

The latest update is a step in the right direction in my opinion, as they are feeding a narrative to the market about the underlying assets instead of all the other weird stuff that has recently been the focus. By changing their listed name from Mantengu Mining Limited to just Mantengu Limited, they are sending a message that they are more than just a mining company.

In addition to the mining assets in the group (Langpan / Meerust / Blue Ridge), they recently acquired silicon carbide manufacturing plant Sublime Technologies in what looked like a bargain that is almost too good to be true. They’ve also acquired the assets of Masorini Iron Beneficiation.

The current strategy includes a willingness to acquire non-mining opportunities in verticals like base load power generation. So, you can expect to see activity from the company in mining, mining services and energy.

You can probably also expect to see further weirdness, unless the winds of change really are blowing.

There’s trouble at South32 (JSE: S32)

Electricity supply for the Mozal Aluminium smelter is uncertain

When you hear the word “smelter” you need to imagine the most power-hungry industrial installation imaginable. I’m certainly no engineer, but I know that aluminium smelters use a wild amount of power, as I remember seeing references during the worst of load shedding to just how severe the usage was.

Historically, most of the electricity needed for South32’s Mozal Aluminium smelter has been generated in Mozambique by the Cahora Bassa hydro-electric generator. Now, renewable energy is great and all, but it relies on mother nature doing her part. Recent drought conditions in Mozambique have led to the operator of the generator highlighting a risk to supply.

There’s a plan B: Eskom. These days, that’s even a decent plan B! The deal is that Eskom supplies power to Mozal Aluminium when the hydro-electric project can’t meet requirements. The problem is that the deal is up for renewal and South32 is unable to get an affordable price tariff from the parties on the other side (the Mozambique government, the hydro-electric company and Eskom).

This creates material uncertainty around the ability for the smelter to operate at all beyond March 2026. This would be a disastrous outcome for all involved, so hopefully a better solution is reached at the negotiating table. But in the meantime, South32 has flagged the risk and that there will be a large related impairment in the FY25 results.

At this stage, they haven’t given guidance on the size of the potential impairment.

Supermarket Income REIT picks up a new property on an attractive yield (JSE: SRI)

This pricing is food for thought

The UK is a developed market that has structurally lower yields than South Africa. UK 10-year Gilts (their bonds) are currently yielding 4.6%. South African 10-year bonds are yielding 9.9%. That’s a difference of more than 500 basis points!

So, you expect to see properties in the UK vs. South Africa following suit, with a large difference between the net initial yields they are acquired on. The latest deal by Supermarket Income REIT suggests that either UK supermarket assets are too cheap, or South African retail assets are too expensive – or perhaps both.

Supermarket Income REIT is acquiring a Tesco supermarket in Ashford for £54.1 million on a net initial yield of 7%. Remember, the higher the yield, the cheaper the property. The lease still has nine years to run and has annual inflation-linked rent reviews, with a cap of 5% and a floor of 0%. Now, this may be single tenant risk, but it’s apparently a great site that Tesco has been in for years. The risks seem more than manageable, with 7% as a hard currency yield being a great price for the REIT. South African retail properties change hands for only a few of hundred basis points more (i.e. on yields of around 9% to 11% for quality properties), a gap that feels too small based on relative bond yields.

This is a redeployment of capital that the REIT unlocked through forming a strategic joint venture with Blue Owl Capital. The net cash consideration on that deal was around £200 million, so they still have plenty of capital to deploy. Hopefully they can find more deals at this price!

Tharisa has corrected an error in its production report (JSE: THA)

The numbers are better than reported, but mistakes like these shouldn’t be happening

The good news from Tharisa is that they understated their net cash position as at 30 June 2025 when they released their second quarter production report. The bad news is that this is a material line item on the financials, so there’s a decent chance that the incorrect number was part of decisions made by market participants.

Somehow, Tharisa didn’t include a cash balance that they have on deposit with a financial institution. The correct cash number is $164.9 million, not $150.9 million. The debt number is correct at $121.5 million.

This means that net cash is actually $43.1 million, not $29.4 million as reported. That’s a 47% difference in net cash! $13.7 million in net assets (the difference) is roughly R245 million, or 3.8% of the current market cap. This unfortunately isn’t an immaterial error.

Nibbles:

  • Director dealings:
    • Fabricio Bloisi casually bought around R410 million in Prosus (JSE: PRX) shares in an on-market trade. R410 million!
    • An alternate non-executive director of WeBuyCars (JSE: WBC) sold shares worth a whopping R65 million to rebalance the portfolio. The stock has had a wild run, so this particular director sees this as a good opportunity to reduce exposure at a great price.
    • A director of a subsidiary of RFG Holdings (JSE: RFG) sold shares worth R826k.
    • The CEO of Vunani (JSE: VUN) bought shares worth R30k.
  • Assura (JSE: AHR) shareholders still aren’t falling over themselves to accept the Primary Health Properties (JSE: PHP) offer. The good news is that Primary Health Properties received regulatory approval in Ireland for the deal, which is the final approval they needed. The bad news is that holders of only 1.18% of Assura shares have accepted the offer. The offer closes on 12 August. A lot needs to happen in the next month for this deal to be a success.
  • Life Healthcare (JSE: LHC) confirmed that the proposed disposal of Life Molecular Imaging to Lantheus Holdings has now met all conditions precedent and will conclude on 21 July.
  • There’s generally been good news at Accelerate Property Fund (JSE: APF) recently, as the company looks to fix its balance sheet and move forward with Fourways Mall as a more successful asset than before. The latest news isn’t positive though, with lead independent director Derick van der Merwe resigning with effect from 11 July 2025 due to “strategic differences” – whatever those might be. It may be nothing, or it may be something. Only time will tell.
  • The meeting for the scheme of arrangement for the take-private of AH-Vest (JSE: AHL) has been convened for 11th August.
  • African Dawn Capital (JSE: ADW) has been suspended from trading due to failure to publish financial statements within the prescribed time.
1...212223...233Page 22 of 233

Focuses on making market news and investment concepts accessible, understandable and fun!

Ghost Mail is free to read

SUBSCRIBE TODAY

Partner with Ghost Mail

CONTACT US

© Ghost Mail

Verified by MonsterInsights