Company news in brief
Eskom evaluating bids for mortgage business
South Africa's cash-strapped power utility Eskom is evaluating bids for its mortgage lending business, a spokesman said on Friday, as the company works to shore up its balance sheet against a backdrop of operational woes.
The sale of Eskom's mortgage business, which specialises in lending to employees, would be the first major privatisationdeal under President Cyril Ramaphosa, who has made revamping state-owned firms like Eskom a top priority.
The government said as far back as 2015 that it was considering divesting some Eskom assets, but the proposal was vehemently opposed by trade unions.
Ramaphosa appointed a task team on Friday to advise the government on how to resolve Eskom's operational and financial problems, including cutting its debt burden.
Its work will address "the government's concern that the lack of adequate electricity has a negative impact on economic recovery and that there is a need for intervention in the short and medium term to restore the supply-demand balance", the presidency in a statement. – Nampa/Reuters
Aspen drops on debt worries, revenue forecast
Shares in Aspen Pharmacare fell more than 8% on Friday, a day after the South African drugmaker said it had negotiated a temporary relaxation of its lending agreements and forecast little growth in full-year revenues.
The company, which is finalising the sale of its infant formula business, said on Thursday it had agreed a relaxation of its lending agreements with creditors should the transaction not be completed by Dec. 31.
Proceeds from the R12.9 billion sale of the business to French company Lactalis will be used to reduce debt.
Jitters about the company's borrowing levels contributed to a 35% share price tumble in just over a week after it posted its full-year results.
"The market is spooked by the fact that the debt ratio is not coming down quick enough and realising that it may have to sell more business in the future in order to cover its debt especially when it is growing at such levels," said Greg Katzenellenbogen, director at Sanlam Private Wealth.
Aspen flagged revenue growth of between 1% and 4%, with a weaker performance across Europe offseting a stronger showing for commercial pharmaceuticals in most emerging markets. – Nampa/Reuters
Qatar Petroleum to invest in major expansion
Qatar Petroleum (QP) is looking to invest at least US$20 billion in the United States over the coming few years, its chief executive told Reuters, after the Gulf Arab state quit OPEC, freeing Doha from potential legal risks in the United States.
Saad al-Kaabi, who holds the energy portfolio of the world's top liquefied natural gas (LNG) producer, also said yesterday QP aimed to announce its foreign partners for the new LNG trains it is building by the middle of next year.
But he added QP could carry out the project alone, with no international oil company at its side, if no good offers were made.
"Mark my words, if I don't get a good deal, we go alone," Kaabi said in an interview at his office in Doha. – Nampa/Reuters
Starbucks sales growth to be steady
Starbucks Corp said on Thursday it was partnering with UberEats for delivery from about 3 500 US stores and would nearly double its outlets in China over the next four years, but forecast that same-store sales would remain steady, sending shares down 3%.
The company said it expects its global same-store sales growth between 3% and 4% annually in the long term, roughly in line with a forecast that estimates sales growth to be at the lower end of 3% to 5% this year.
Starbucks has been struggling to lure diners to its restaurants as it faces severe competition from smaller coffee chains that offer exotic coffees as well as fresh food.
Starbucks also said on Thursday it would raise its store footprint in China, its fastest growing market, to 6 000 stores across 230 cities over the next four years, up from 3 600 stores in 150 cities.
Starbucks has partnered with Alibaba Group Holding Ltd earlier this year for delivering food and coffee in China, as it looks to compete with local coffee chains. – Nampa/Reuters
Shareholders sceptical of Deutsche Bank/Commerzbank tie-up
Shareholders and a major union expressed scepticism on Thursday about speculation of a merger between Deutsche Bank and Commerzbank.
Talk of a possible merger between Germany's two largest banks has heated up in the past few weeks as both lenders are still struggling to revitalise their performance a decade on from the financial crisis.
But Jan Duscheck, head of German union Verdi's banking division, said he did not assume at the moment that a merger of the two banks would be seriously considered in the foreseeable future.
"The task now is to sharpen the business models in both banks and implement their strategic plans," he said.
Executives at both banks have said that they want to focus on getting their own houses in order before considering any tie-up between the two. – Nampa/Reuters
South Africa's cash-strapped power utility Eskom is evaluating bids for its mortgage lending business, a spokesman said on Friday, as the company works to shore up its balance sheet against a backdrop of operational woes.
The sale of Eskom's mortgage business, which specialises in lending to employees, would be the first major privatisationdeal under President Cyril Ramaphosa, who has made revamping state-owned firms like Eskom a top priority.
The government said as far back as 2015 that it was considering divesting some Eskom assets, but the proposal was vehemently opposed by trade unions.
Ramaphosa appointed a task team on Friday to advise the government on how to resolve Eskom's operational and financial problems, including cutting its debt burden.
Its work will address "the government's concern that the lack of adequate electricity has a negative impact on economic recovery and that there is a need for intervention in the short and medium term to restore the supply-demand balance", the presidency in a statement. – Nampa/Reuters
Aspen drops on debt worries, revenue forecast
Shares in Aspen Pharmacare fell more than 8% on Friday, a day after the South African drugmaker said it had negotiated a temporary relaxation of its lending agreements and forecast little growth in full-year revenues.
The company, which is finalising the sale of its infant formula business, said on Thursday it had agreed a relaxation of its lending agreements with creditors should the transaction not be completed by Dec. 31.
Proceeds from the R12.9 billion sale of the business to French company Lactalis will be used to reduce debt.
Jitters about the company's borrowing levels contributed to a 35% share price tumble in just over a week after it posted its full-year results.
"The market is spooked by the fact that the debt ratio is not coming down quick enough and realising that it may have to sell more business in the future in order to cover its debt especially when it is growing at such levels," said Greg Katzenellenbogen, director at Sanlam Private Wealth.
Aspen flagged revenue growth of between 1% and 4%, with a weaker performance across Europe offseting a stronger showing for commercial pharmaceuticals in most emerging markets. – Nampa/Reuters
Qatar Petroleum to invest in major expansion
Qatar Petroleum (QP) is looking to invest at least US$20 billion in the United States over the coming few years, its chief executive told Reuters, after the Gulf Arab state quit OPEC, freeing Doha from potential legal risks in the United States.
Saad al-Kaabi, who holds the energy portfolio of the world's top liquefied natural gas (LNG) producer, also said yesterday QP aimed to announce its foreign partners for the new LNG trains it is building by the middle of next year.
But he added QP could carry out the project alone, with no international oil company at its side, if no good offers were made.
"Mark my words, if I don't get a good deal, we go alone," Kaabi said in an interview at his office in Doha. – Nampa/Reuters
Starbucks sales growth to be steady
Starbucks Corp said on Thursday it was partnering with UberEats for delivery from about 3 500 US stores and would nearly double its outlets in China over the next four years, but forecast that same-store sales would remain steady, sending shares down 3%.
The company said it expects its global same-store sales growth between 3% and 4% annually in the long term, roughly in line with a forecast that estimates sales growth to be at the lower end of 3% to 5% this year.
Starbucks has been struggling to lure diners to its restaurants as it faces severe competition from smaller coffee chains that offer exotic coffees as well as fresh food.
Starbucks also said on Thursday it would raise its store footprint in China, its fastest growing market, to 6 000 stores across 230 cities over the next four years, up from 3 600 stores in 150 cities.
Starbucks has partnered with Alibaba Group Holding Ltd earlier this year for delivering food and coffee in China, as it looks to compete with local coffee chains. – Nampa/Reuters
Shareholders sceptical of Deutsche Bank/Commerzbank tie-up
Shareholders and a major union expressed scepticism on Thursday about speculation of a merger between Deutsche Bank and Commerzbank.
Talk of a possible merger between Germany's two largest banks has heated up in the past few weeks as both lenders are still struggling to revitalise their performance a decade on from the financial crisis.
But Jan Duscheck, head of German union Verdi's banking division, said he did not assume at the moment that a merger of the two banks would be seriously considered in the foreseeable future.
"The task now is to sharpen the business models in both banks and implement their strategic plans," he said.
Executives at both banks have said that they want to focus on getting their own houses in order before considering any tie-up between the two. – Nampa/Reuters
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