COMPANY NEWS IN BRIEF

Vedanta to invest R7 billion

Vedanta will invest R7 billion in expanding its Gamsberg Mine in the Northern Cape to double up its production and become the largest zinc producer in Africa.

The investment, as approved by the diversified miner's board, will increase Gamsberg's annual ore production capacity from four million tons to eight million tons and enable it to build another concentrator plant to produce an additional 200 000 tons of zinc metal concentrate.

As a result, Vedanta Zinc International is expected to become the largest zinc producer on the continent, with an annual production of 500 000 tons of zinc metal in concentrate.

Vedanta chairperson Anil Agarwal said the growth investment demonstrates the group's commitment to Northern Cape and South Africa and will create thousands of jobs to make a significant socioeconomic contribution to Gamsberg's host communities.

There are over 1 200 permanent personnel currently employed at the Gamsberg Mine. Phase two, as enabled through the R7 billion investment, will create between 1 500 and 2 000 jobs at its peak during the construction phase and between 800 and 1 000 permanent jobs during operations. -Fin24/Bloomberg

Elon Musk buys 9.2% stake in Twitter

Elon Musk has taken a 9.2% stake in Twitter, a week after hinting about plans to shake up the social media platform.

Twitter shares rose about 26% in pre-market trading, after a regulatory statement Monday on Musk buying the stake.

Musk, 50, polled his more than 80 million followers on Twitter last month, asking them whether the company adheres to the principles of free speech. After more than 70% said no, he asked whether a new platform was needed and said he was giving serious thought to starting his own platform.

Musk has been one of the biggest personalities on Twitter, and has regularly run into trouble on the platform.

The Tesla Inc. chief executive officer is currently seeking to exit a 2018 deal with the US Securities and Exchange Commission which limits his Twitter posts about the electric car maker. -Fin24/Bloomberg

Transnet sides with ConCourt

Transnet's board has sided with the Constitutional Court with respect to government's BBBEE tender regulations, opting for a policy change that will allow it to procure goods and services in line with the original iteration of the contested Preferential Public Procurement Framework Act (PPPFA).

In February the Constitutional Court ruled that the finance minister exceeded his powers in making regulations that excluded businesses that were not black-owned from tendering. While it waits for clarity from the court, Treasury released draft tender regulations that bring procurement back in line with the system that existed before 2017.

In late March Transnet temporarily suspended broad-based black economic empowerment (BBBEE) criteria in tenders, remarking that it believed the current 80/20 and 90/10 preference point systems have in practice "benefited very few black-owned companies". It also asked Treasury for an exception from its procurement policy.

However, a statement from the entity released late last week said Transnet's board of directors approved an addendum to the company's supply chain management policy to allow the state-owned logistics company to include specific provisions for preferential procurement in its procurement processes. -Fin24/Bloomberg

RCS acquires Mobicred

Unsecured consumer credit provider RCS has acquired Mobicred. The company, owned by French group BNP Paribas now gets a foot in the growing buy-now-pay-later market to fund retail purchases.

Mobicred describes itself as SA's leading online credit provider already. Founded in 2013, Mobicred's platform is already integrated into more than 4 000 online stores in South Africa.

Online retailers like Takealot, Superbalist, NetFlorist and their traditional brick-and-mortar counterparts that have online stores have Mobicred as one of their payment options. Other big retailers that use it include iStore, Incredible Connection, Hifi Corporation and even travel providers such as Travelstart and Lift Airlines.

Mobicred founder and CEO Jason Sive said the business has achieved 70% year-on-year growth since its launch.

RCS CEO Regan Adams said there has never been a better opportunity to tap into the growing e-commerce environment. Mobicred will add new brands to RCS's already well-established shopping network of over 28 000 stores. -Fin24/Bloomberg

Woolworths to turn around David Jones

Apparel and food retailer Woolworths says it’s committed to turning around its embattled David Jones business, in the face of a report that it is considering getting rid of it altogether.

In a written statement, Woolworths would not be drawn into commenting on the possible sale of the ailing business, saying it does not comment on "media or market speculation".

The group further stated that it will communicate any developments to the market when that is warranted.

"Woolworths Holdings Limited remains focused on the operational turnaround of David Jones and ensuring that this iconic business is restored to its rightful market leadership position in Australia,” the retailers clarified.

On Monday, The Australian wrote that the South African retailer was in talks with banks to sell the department store. The Woolworth share price rallied over 4% amid the speculation.

Woolworths acquired David Jones in 2014 for R21.4 billion. At the time, the acquisition of the 184-year-old company, seemed like a step in the right direction for its aspiration to conquer the southern hemisphere and compete with global retailers. -Fin24/Bloomberg