Company news in brief
Investors back Steinhoff class action lawsuit
South African investors including Allan Gray, Investec's asset management arm and Old Mutual are backing litigation against crisis-hit Steinhoff in the Netherlands, they said on Friday.
The investors represented about 20% of the shareholding in Steinhoff when the South African retailer uncovered accounting irregularities last year that sent its share price tumbling, a statement from representatives of the investors said.
The case is being paid for by Claims Funding Europe, a litigation-funding company based in Ireland, and run by Dutch law firm BarentsKrans.
It is separate from a class action brought by the Dutch shareholder group VEB, whose lawsuit is aimed at compensating investors for the more than 14 billion euro (US$16.23 billion) that has been wiped off Steinhoff's market value since December last year.
Steinhoff is also facing a R59 billion (US$4.15 billion) claim from former chairman and top shareholder Christo Wiese. – Nampa/Reuters
SA arms firm fails to pay senior staff in reform setback
South African state-owned arms manufacturer Denel did not pay senior staff their salaries in full last month, the company said, in a setback for President Cyril Ramaphosa's drive to turnaround struggling state companies.
Denel, which produces military equipment for the South African army and foreign forces, has been grappling with a liquidity crunch after becoming embroiled in corruption scandals during Zuma's scandal-plagued tenure.
"In September management salaries were not paid in full," Denel spokeswoman Vuyelwa Qinga told Reuters on Friday, adding the cuts were due to "liquidity challenges".
Executives were paid 80% of their salaries while specialists were paid 85%, Qinga said.
Qinga said regular employees were paid in full and that the company was working with the government to find a solution to its funding challenges.
Labour unions say it is critical that Denel receives financial support - either via additional government guarantees or a capital injection. There could be more details when finance minister Nhlanhla Nene delivers the budget this month. – Nampa/Reuters
Randgold faces pushback from Congo over Barrick
Randgold Resources Ltd has run into opposition from the Democratic Republic of Congo's government, which is insisting that it authorise the acquisition by Canada's Barrick Gold Corp of Randgold's stake in a Congolese gold mine.
Barrick agreed to buy Randgold last week in a deal to create the world's largest gold company with an aggregate market valuation of US$18.3 billion.
As a result of the takeover, Barrick will become the owner of Randgold's 45% stake in the Kibali mine in Congo but Congolese mines minister Martin Kabwelulu said the shareholder change would need to be approved by the government in accordance with Congo's new mining code.
The ministry's statement backs the position taken by state miner Sokimo, which owns a 10% stake in the mine and vowed to "assert its rights" regarding the takeover. AngloGold Ashanti owns the other 45% stake in the project, one of Africa's biggest gold mines.
Sokimo said the transaction represented an effort by the foreign companies "to impose themselves, without any prior discussion, in the countries from which the resources that make up their wealth are extracted". – Nampa/Reuters
Vodacom Tanzania’s CEO denied work permit
Vodacom Tanzania said on Friday the government had denied its incoming chief executive officer, a Kenyan, a work permit, and it would have to restart the recruitment process.
In April, Vodacom Tanzania named Sylvia Mulinge, at the time head of business at Kenya's biggest telecoms operator Safaricom to the post. She was meant to take up her position on June 1.
Ali Mufuruki, Vodacom Tanzania's chairman, told Reuters the company had been given reasons by the government, but it cannot disclosed them. Mufuruki said it was up to the Tanzanian government to give the reasons.
The government has been accused by investors of delaying or rejecting work permits for foreign workers, complicating their operations.
Vodacom controls 32% market share of the country's 40 million mobile subscribers. Other major players include Tigo Tanzania, a subsidiary of Sweden’s Millicom and a local unit of India's Bharti Airtel. – Nampa/Reuters
Aston Martin says stock market debut fully subscribed
Luxury British carmaker maker Aston Martin said its stock market share offer had been fully subscribed after it tightened and slightly lowered its price range to between 18.50 pounds (US$24.11) to 20 pounds per share.
The company, famed for making the sports car driven by fictional secret agent James Bond, is selling around 25% of its stock in the first initial public offering (IPO) by a British carmaker for decades.
Aston initially set a range of between 17.50 pounds to 22.50 pounds per share, equating to a deal size of about 1.0-1.27 billion pounds and giving the company a price tag of up to 5.1 billion pounds.
It said yesterday the books were now covered at the tighter range and it expects to close them at midday London time today.
The IPO follows a sale of shares by its main owners, Kuwaiti and Italian private equity groups. – Nampa/Reuters
South African investors including Allan Gray, Investec's asset management arm and Old Mutual are backing litigation against crisis-hit Steinhoff in the Netherlands, they said on Friday.
The investors represented about 20% of the shareholding in Steinhoff when the South African retailer uncovered accounting irregularities last year that sent its share price tumbling, a statement from representatives of the investors said.
The case is being paid for by Claims Funding Europe, a litigation-funding company based in Ireland, and run by Dutch law firm BarentsKrans.
It is separate from a class action brought by the Dutch shareholder group VEB, whose lawsuit is aimed at compensating investors for the more than 14 billion euro (US$16.23 billion) that has been wiped off Steinhoff's market value since December last year.
Steinhoff is also facing a R59 billion (US$4.15 billion) claim from former chairman and top shareholder Christo Wiese. – Nampa/Reuters
SA arms firm fails to pay senior staff in reform setback
South African state-owned arms manufacturer Denel did not pay senior staff their salaries in full last month, the company said, in a setback for President Cyril Ramaphosa's drive to turnaround struggling state companies.
Denel, which produces military equipment for the South African army and foreign forces, has been grappling with a liquidity crunch after becoming embroiled in corruption scandals during Zuma's scandal-plagued tenure.
"In September management salaries were not paid in full," Denel spokeswoman Vuyelwa Qinga told Reuters on Friday, adding the cuts were due to "liquidity challenges".
Executives were paid 80% of their salaries while specialists were paid 85%, Qinga said.
Qinga said regular employees were paid in full and that the company was working with the government to find a solution to its funding challenges.
Labour unions say it is critical that Denel receives financial support - either via additional government guarantees or a capital injection. There could be more details when finance minister Nhlanhla Nene delivers the budget this month. – Nampa/Reuters
Randgold faces pushback from Congo over Barrick
Randgold Resources Ltd has run into opposition from the Democratic Republic of Congo's government, which is insisting that it authorise the acquisition by Canada's Barrick Gold Corp of Randgold's stake in a Congolese gold mine.
Barrick agreed to buy Randgold last week in a deal to create the world's largest gold company with an aggregate market valuation of US$18.3 billion.
As a result of the takeover, Barrick will become the owner of Randgold's 45% stake in the Kibali mine in Congo but Congolese mines minister Martin Kabwelulu said the shareholder change would need to be approved by the government in accordance with Congo's new mining code.
The ministry's statement backs the position taken by state miner Sokimo, which owns a 10% stake in the mine and vowed to "assert its rights" regarding the takeover. AngloGold Ashanti owns the other 45% stake in the project, one of Africa's biggest gold mines.
Sokimo said the transaction represented an effort by the foreign companies "to impose themselves, without any prior discussion, in the countries from which the resources that make up their wealth are extracted". – Nampa/Reuters
Vodacom Tanzania’s CEO denied work permit
Vodacom Tanzania said on Friday the government had denied its incoming chief executive officer, a Kenyan, a work permit, and it would have to restart the recruitment process.
In April, Vodacom Tanzania named Sylvia Mulinge, at the time head of business at Kenya's biggest telecoms operator Safaricom to the post. She was meant to take up her position on June 1.
Ali Mufuruki, Vodacom Tanzania's chairman, told Reuters the company had been given reasons by the government, but it cannot disclosed them. Mufuruki said it was up to the Tanzanian government to give the reasons.
The government has been accused by investors of delaying or rejecting work permits for foreign workers, complicating their operations.
Vodacom controls 32% market share of the country's 40 million mobile subscribers. Other major players include Tigo Tanzania, a subsidiary of Sweden’s Millicom and a local unit of India's Bharti Airtel. – Nampa/Reuters
Aston Martin says stock market debut fully subscribed
Luxury British carmaker maker Aston Martin said its stock market share offer had been fully subscribed after it tightened and slightly lowered its price range to between 18.50 pounds (US$24.11) to 20 pounds per share.
The company, famed for making the sports car driven by fictional secret agent James Bond, is selling around 25% of its stock in the first initial public offering (IPO) by a British carmaker for decades.
Aston initially set a range of between 17.50 pounds to 22.50 pounds per share, equating to a deal size of about 1.0-1.27 billion pounds and giving the company a price tag of up to 5.1 billion pounds.
It said yesterday the books were now covered at the tighter range and it expects to close them at midday London time today.
The IPO follows a sale of shares by its main owners, Kuwaiti and Italian private equity groups. – Nampa/Reuters
Comments
Namibian Sun
No comments have been left on this article