COMPANY NEWS IN BRIEF

Ghana fails to reach debt deal with international bondholdersREUTERS Ghana has failed to strike a deal with two groups of international bondholders to restructure US$13 billion of debt, the government of the West African nation said on Monday, dealing a blow to its efforts to swiftly emerge from default and economic crisis.Talks were derailed for now amid indications from the International Monetary Fund (IMF) that the agreement was not going to be in line with their debt sustainability parameters, which set out how much debt it thinks a country can afford, the government said in a statement.A "regional" African bondholder group had also rejected part of the proposed rework, including a "PAR option" to retain the original value of the bonds with a longer maturity and lower coupon.In December 2022, Ghana, the world's second-biggest cocoa producer, defaulted on most of its external debt of US$30 billion, after debt costs and inflation surged when it was locked out of international markets.Bondholders who signed up to either proposal would have also received a separate bond representing accrued "Past Due Interest".Some bondholders had favoured the use of so-called state-contingent debt instruments, which could increase payouts if Ghana's economy performs better on agreed metrics, as a way of bridging differences in their outlook on a country's economic trajectory.Zimbabwe asks Starlink to cut off servicesBLOOMBERGElon Musk’s Starlink has halted internet services in Zimbabwe until it receives licensing approval from the nation’s telecommunications regulator, a top official said.The Posts and Telecommunications Regulatory Authority of Zimbabwe said it asked Starlink to disconnect all kits that were illegally operating in the Southern African nation, according to Gift Machengete, the director-general at the authority.“Its 100% true that we have asked them to disable those that are connected until they regularise,” he said by phone on Friday from Harare. “This is illegal — how can we allow people to broadcast before they are licensed?”Starlink on Friday notified users in Zimbabwe that the regulator directed it “to disable the service”.Machengete said he spoke with Musk on Thursday and asked that SpaceX, Starlink’s parent company, first submit a formal application to provide services in Zimbabwe.“It was a very cordial meeting and he understood what we are doing,” Machengete said. “I don’t think it will take a very long time once they have submitted.”Trade in Starlink kits has boomed in Zimbabwe, especially on the informal market. Traders used social media platforms to advertise sales and a single kit could fetch as much as R23 500. Earlier this year, Portraz clamped down on the illegal use of Starlink, with police arresting citizens found using the service.Gulf states, vulnerable but influential, seek to stop new Iran-Israel warREUTERS Gulf states are pushing to stop a full-blown regional war after Iran's unprecedented retaliatory strikes on Israel, sources in the region said, fearing new escalation could put them on front lines of a conflagration and ruin plans to reshape the region.Saudi Arabia and the United Arab Emirates (UAE) in particular may be well placed to triangulate between Iran, Israel and the United States after diplomatic advances in recent years that benefited all those countries.Allies of Washington, Gulf monarchies have sought to stabilise ties with Iran and Israel to resolve longstanding security concerns and allow them to focus on national projects.The UAE and Bahrain signed a normalisation deal with Israel in 2020 and Saudi Arabia was considering a similar agreement also involving a U.S. defence pact until the Gaza war torpedoed diplomacy. Riyadh also buried the hatchet with Iran last year after years of feuding.The war in Gaza had already put policies of entente under strain.The United Arab Emirates and Bahrain made peace with Israel in 2020 through the so-called 'Abraham accords' and Saudi Arabia was considering following suit in return for U.S. security commitments.Meanwhile, Saudi Arabia and Iran last year put aside decades of destructive feuding that had fuelled conflicts around the region with a deal to restore diplomatic ties and avoid harming each other's interests.But the devastation in Gaza has derailed further moves towards peace with Israel, and Iran's backing of regional Shi'ite Muslim allies that have targeted U.S. bases in Iraq and elsewhere has raised concerns in the Gulf.The fact that detente might allow Gulf states to bring down regional tensions was probably regarded in Riyadh and Abu Dhabi as confirmation their policy was working, Algashian said.Ellies may be saved after allTECHCENTRAL Ellies Electronics – the main operating subsidiary of Ellies Holdings – has received buyout offers from unnamed third parties that its CEO believes could save the company.This latest plot twist in the long-running Ellies saga came after Ellies Holdings said on Wednesday that it would apply for liquidation in terms of the Companies Act after failing to secure backing from its bankers for an acquisition that formed a key part of a turnaround plan.The company was placed into voluntary business rescue in January when a planned acquisition of Bundu Power, which it had hoped would put it on a firmer footing financially, fell through.That deal was subject to debt funding from Ellies’ bankers and the approval of shareholders. The bankers advised Ellies that they were not prepared to fund the acquisition.“The business rescue practitioner has concluded that there is no reasonable prospect of the company being rescued, and therefore ... application will be made to the court for an order discontinuing the business rescue proceedings and placing the company into liquidation,” Ellies Holdings said in a brief statement on the JSE’s stock exchange news service (Sens) late on Wednesday.But in the latest development, Ellies Electronics – which “contains all cash-generating business units within the Ellies Group” – said it intends to continue trading.“We would like to clarify that the recent Sens announcement related to Ellies Holdings. Ellies Holdings is the JSE-listed holding company of the Ellies group of operating entities. Its only assets are shares in its operating subsidiary companies,” said John Evans, business rescue practitioner for both Ellies Holdings and Ellies Electronics. “Ellies Electronics continues to trade and is on track to publish a proposed business rescue plan by 10 May 2024.”Tension at MultiChoice over last-minute leadership changesMYBROADBAND As the attempted acquisition of MultiChoice by French broadcaster Canal+ continues, the Business Times reports that rifts have begun to emerge over the last-minute decision to keep MultiChoice board chair Imtiaz Patel.MultiChoice had previously announced that Patel would retire at the end of March, with Elias Masilela stepping into his shoes.However, at a board meeting on 28 March, it was announced that Patel would continue in his role while Masilela would become the company’s deputy chair — a newly created position.Lead independent director Jim Volkwyn reportedly chaired the meeting, and the alleged complaints revolved around how the decision gave the impression that Masilela was not competent enough to handle the Canal+ deal.Responding to the Business Times, MultiChoice said the decision to extend Patel’s time as board chair was unanimous. It was also noted that Patel would not receive any additional fees that he wouldn’t have otherwise.Patel declined to comment, referring queries to MultiChoice, while Masilela said he supported the decision.Canal+ initially made an offer to buy out MultiChoice for R105 per share in February 2024.This was after the group increased its shareholding in MultiChoice to 35.01% of the company, exceeding the 35% threshold before a mandatory offer must be made as set by the Companies Act.MultiChoice publicly rejected this offer, and it was also chastised by the Takeover Regulation Panel.

COMPANY NEWS IN BRIEF

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Namibian Sun 2025-05-02

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COMPANY NEWS IN BRIEF

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Namibian Sun 2025-05-02

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