COMPANY NEWS IN BRIEF

24 September 2020 | Business

Yandex in talks to buy Tinkoff

Russian bank TCS Group Holding is in talks to sell its online bank Tinkoff to Russian internet giant Yandex for US$5.48 billion, the two companies said.

The idea was first publicly floated last year when Oleg Tinkov, founder of Russia's TCS group, suggested to Yandex's chief executive that they combine his bank with Yandex, known as Russia’s answer to Google.

"The parties have come to an agreement in principle on a transaction that would consist of cash and share consideration worth approximately US$5.48 billion or US$27.64 per Tinkoff share," Yandex said.

The price of the possible deal represents an 8% premium to Tinkoff's GDR price as of Sept. 21. One half of the deal is expected to be paid in cash and another half with Yandex shares, a banking source told Reuters.

Its founder, Tinkov has been battling acute leukaemia and had a bone marrow transplant in July. He stepped down as board chairman of the bank to focus on his health and transferred his TCS shares to a Tinkov family trust in the spring. – Nampa/Reuters

Nike expected to return to profit

Strong online sales and demand from Chinese shoppers and students heading back to school are expected to have helped Nike swing back to a profit in the first quarter, a sequential improvement from the surprise loss it posted in July, according to Refinitiv.

With malls and department stores like J.C. Penney shutting shops due to Covid-19 lockdowns, people turned to e-commerce, buying significantly more products directly from Nike's website.

In the fiscal fourth quarter, Nike reported a 75% rise in online sales and Wall Street analysts expect this to continue - at least nine have raised their price targets on the stock in the last two weeks.

In the first quarter, 12% of all footwear on Nike.com featured new types of sneakers and shoes, versus 10% in the prior quarter, according to apparel data firm StyleSage.

The company sold out 17% of all footwear this year, compared with 6% in the fourth quarter, showing improvements in customer demand and investment in new items online. Online sales for Nike clothing show a similar trend. – Nampa/Reuters

Ralph Lauren to lay off thousands

Ralph Lauren Corp said it would cut 15% of its global workforce by the end of this fiscal year as the luxury retailer strives to lower costs and ride out the impact of Covid-19 on sales and shopping habits.

The New York-based fashion house, which has 530 stores globally, said the changes would see it move more business online. The company did not say how many or what type of jobs could go, but based on its last reported total workforce of about 24 900 employees.

"The changes happening in the world around us have accelerated the shifts we saw pre-Covid, and we are fast-tracking some of our plans to match them," Chief Executive Officer Patrice Louvet said.

The health crisis has hit demand for high-end handbags, apparel and accessories as more customers hold back on non-essential spending, forcing many companies to slow their expansion plans.

It has also put the brakes on the industry's biggest ever merger, with France's LVMH trying to back out of its US$16 billion deal to acquire Tiffany & Co. – Nampa/Reuters

Permira buys German group Neuraxpharm

Buyout group Permira has agreed to buy German pharma group Neuraxpharm, seeking to gain from an expected rise in demand for the company's antidepressants, painkillers and other products for the central nervous system, the companies said.

The deal values the company at almost 1.7 billion euros (US$1.88 billion), including debt, or at about 13 times its expected 2021 core earnings, three people close to the matter said.

The British buyout firm prevailed against competing offers from Carlyle, ICG and Goldman Sach's private equity arm, the sources said. Apax bought Neuraxpharm in 2016, combined it with Invent Farma, and later strengthened the company through add-on acquisitions, such as FB Health and Farmax.

The company makes specialty pharmaceuticals for neurological and psychiatric disorders, including epilepsy, Parkinson's disease, Alzheimer's disease, depression and psychosis. It has annual revenues of more than 460 million euros and 850 employees.

While global M&A activity hit its lowest level in more than a decade in the second quarter, deal-making in the healthcare sector is expected to buck the trend this year as its products and services are considered resilient to the Covid-19 crisis, investment bankers say. – Nampa/Reuters

Barclays to revert to home working

Up to 1 000 Barclays staff who had returned to office-based working in recent weeks will revert to working from home following British government guidance on Tuesday, a spokesman for the bank told Reuters.

British Prime Minister Boris Johnson told people to work from home where possible and ordered bars and restaurants to close early to tackle a fast-spreading second wave of Covid-19.

The latest advice comes just weeks after Johnson urged people to return to their workplaces to try to limit the economic damage to nearly-abandoned city centres.

Around 22 000 Barclays staff have remained working in its offices worldwide throughout the pandemic, as designated key workers needed to keep the financial system ticking over.

Of the around 1 000 more who had begun to return to work worldwide, hundreds based in Britain will resume working from home, the spokesman said, with others potentially following suit if local advice changes in other countries. - Nampa/Reuters

Similar News

 

VAT and Namibian tour operators

16 hours ago | Business

The VAT Act defines a “tour operator” as any person whose supply mainly consists of packaged holiday tours with all arrangements made at an inclusive...

Africa's miners face new TB threat

16 hours ago | Business

Kim Harrisberg - Vama Jele's heart dropped every time he heard that another migrant miner home from South Africa had died from tuberculosis (TB) due...

Company news in brief

16 hours ago | Business

IDC’s investments take big hitSouth Africa's state-owned Industrial Development Corporation (IDC) said it would diversify its equity investments after reporting on Monday a sharp decline...

Shifeta: Tourism revival ongoing

1 day - 27 October 2020 | Business

The latest relaxation of travel controls does not mean the end of the International Tourist Revival Initiative (TRI). This is according to tourism minister Pohamba...

Thousands register for phosphate jobs

1 day - 27 October 2020 | Business

ELLANIE SMITWINDHOEKNamibian Marine Phosphate has received more than 4 000 registrations within the first two weeks of its job registration drive in preparation for its...

Am Weinberg owner to oppose liquidation

1 day - 27 October 2020 | Business

OGONE TLHAGE - Property owner Archie Graham is opposing the liquidation of the Am Weinberg Boutique Hotel and various other businesses owned by him. Bank...

Company news in brief

1 day - 27 October 2020 | Business

Fiat, PSA to win approval for mergerFiat Chrysler and PSA are set to win EU approval for their US$38 billion merger to create the world's...

Company news in brief

2 days ago - 26 October 2020 | Business

Barrick Gold plans to expand in TanzaniaBarrick Gold Corp said on Friday Tanzania has awarded 10 new exploration licenses to the Canadian miner and it...

Data breaches becoming more common

5 days ago - 23 October 2020 | Business

John Mc LoughlinSouth African businesses are becoming more susceptible to cyberattacks and seem to be easy targets for criminals. Data breaches are now a common...

It’s a small world after all

5 days ago - 23 October 2020 | Business

Gerine Hoff There is almost no industry in the country that has not borne the brunt of Covid-19, but along with the hospitality industry, the...

Latest News

Education ministry to advertise 488...

4 hours ago | Education

The education ministry has, as part of their efforts of improving efficiency of use of resources, an internal audit was conducted to establish the magnitude...

Dead-end debt

16 hours ago | Economics

Jo-Maré Duddy – Government will spend about N$1.2 billion more in 2020/21 on interest on its debt than on its entire development budget for Namibia.The...

'Stuck without tap water since...

16 hours ago | Economics

A group of Helao Nafidi residents on Monday started excavating a traditional well to use as their source of water after the town council failed...

Emerging markets' debt tops US$4...

16 hours ago | Economics

US dollar-denominated debt in emerging markets has risen past US$4 trillion for the first time following a surge in issuance during the Covid-19 crisis, data...

'Calibre' of youth worries Swapo

16 hours ago | Politics

TUYEIMO HAIDULAOSHAKATI“We are ready to pass on the seats but when you see the calibre of young people we have and the utterances they make...

Old guard must go and...

16 hours ago | Politics

JEMIMA BEUKESWINDHOEKWalvis Bay Urban constituency councillor Knowledge Ipinge, who is vying to retain his seat in the upcoming local and regional authority elections, says it...

Pandemic slashes tourism by 70%

16 hours ago | Economics

Madrid - International tourists arrivals plunged by an annualised 70% during the first eight months of 2020 because of the coronavirus pandemic, the World Tourism...

China brainstorms new 5-year plan

16 hours ago | Economics

BEIJING - China's fifth Communist Party Plenum - which runs through Thursday behind closed doors – is expected to lay out the framework for the...

Namibians feel unsafe

16 hours ago | Crime

ELLANIE SMITWINDHOEKNamibians polled by an international organisation say they do not feel safe walking the streets, while Namibia has once again been ranked as one...

Load More