Company News in Brief
Zambia approves power agreement for Jubilee
Diversified metals processor Jubilee announced it has received regulatory approval for a new power supply agreement in Zambia, with power delivery commencing on 20 January. The group, which operates in SA and Zambia, has been hit hard by power outages related to a drought in the latter country, where Jubilee has copper interests. The additional power supply agreement, executed with a new broad based power provider, secures access to a distributed power base from multiple sources of generation, minimising the reliance on a single supply source and mitigates risks from localised power network distribution limitations, Jubilee said. The power supply has been delivered at a cost comparable to the company's existing power agreement, offering both economic and operational stability, it said.
-FIN24
Yokohama receives approval to acquire Goodyear
Yokohama Rubber Company received approval for its acquisition of an SA business owned by Goodyear Tyre & Rubber. The business operates in the replacement tyre sales channel only and supplies non-agricultural off-highway tyres specifically related to construction, mining, and ports, the Competition Commission said in a statement. The regulator believes the proposed transaction is unlikely to substantially prevent or lessen competition in any market and does not raise significant public interest concerns.
-FIN24
Moses Madondo to head Thungela Resources
Pure-play coal miner Thungela Resources said on Tuesday it has appointed De Beers Managed Operations CEO Moses Madondo as its CEO designate with effect from 1 August. Madondo is set to replace current CEO July Ndlovu, who will reach the retirement age of 60 in July. Madondo's position with De Beers put him at the helm of the diamond miner's mining operations in SA and Canada, and before taking that position in 2021, he had spent over two decades with AngloGold Ashanti. He has also served on several divisional boards and as a board member of the Minerals Council of South Africa and Rand Refinery, Thungela said in a statement, adding that he has demonstrated strong operational and technical skills. The UCT- and Harvard-educated Madondo holds an executive MBA, a postgraduate diploma in management practice, and a bachelor of science in mechanical engineering.
-FIN24
Nigeria hikes tariffs for mobile operators
Africa's most populous nation Nigeria has hiked mobile tariffs by up to 50%, with the first increase in over a decade following lobbying efforts from MTN amid currency pressures and elevated inflation. The Nigerian Communications Commission (NCC) said in a statement on Monday that will be granting approval for tariff adjustment requests by network operators in response to prevailing market conditions. The adjustment, capped at a maximum of 50% of current tariffs, is lower than was requested by some. Tariff rates have remained static since 2013 despite the increasing costs of operation faced by telecom operators, including MTN, whose unit in the country remains technically insolvent. MTN was hard hit by a massive devaluation in the Nigerian naira in 2024 put pressure on dollar-denominated leases in the country. This has prompted turnaround efforts optimising its capital expenditure and reducing dollar exposure, including through renegotiating tower releases, while it has made clear it is lobbying hard for a hike in mobile tariffs, seeking about 100%.
Maputo port sees reduction in traffic
Volumes at the Maputo-Matola port complex, a significant site for SA's exports, dipped 1% to 30.9 million tonnes in 2024 as political unrest in Mozambique took its toll, the Maputo Port Development Company (MPDC) said on Tuesday. The slight decrease in total volumes handled to 30.9 million tonnes was primarily due to the post-electoral protests and road blockages in the Maputo corridor, the MPDC said in a statement, with border closures and more difficult road conditions persisting for a month in total. The rail corridor from South Africa to Mozambique was also affected by the protests and blockages, paired with a derailment in October-November, which led to a shutdown of the line for a month, it said. The border was first closed in November last year and then several times again as protests flared. According to the Minerals Council of South Africa, just over half of SA's chrome exports went through Maputo in 2023 and about 10% of coal.
-FIN24
Clicks' turnover grows to R18.2 billion
Pharmacy group Clicks reported that group turnover for the 20 weeks to 12 January grew 8.1% to R18.2 billion, while retail sales, which includes Clicks, the Body Shop and Sorbet corporate stores, rose 8.7%. But comparable store sales growth at the JSE-listed pharmaceutical group slowed to 5.9% from 8.4%, while selling price inflation averaged 3.5% from 7.5%, though volumes still grew 2.4%. Key factors driving the softer performance included the temporary delay in the issuing of licences to Clicks while it awaited the sale of its medicine manufacturing business Unicorn Pharmaceuticals, analysts said.
-FIN24
UniCredit not in rush over Commerzbank takeover
Italy's UniCredit bank said on Tuesday it would not rush a possible takeover of German rival Commerzbank and was willing to walk away but would wait first for the German election's outcome. "Given that the emotions are what they are, let's wait for elections," UniCredit chief executive Andrea Orcel said during a Bloomberg event on the sidelines of the annual meeting of global elites at the World Economic Forum in Davos, Switzerland. "Let's wait for things to calm down and then let's have an opportunity to instead of talk about perceptions, talk about facts, truth about figures, talk about the merits of the deal," he added. Germany heads to the polls next month after the collapse of Chancellor Olaf Scholz's ruling coalition late last year. Scholz is widely expected to be pushed out of office. - AFP
Country Garden shares climb in excess of 25%
Shares in Chinese property giant Country Garden soared more than 25% in Hong Kong on Tuesday, after the embattled firm resumed trading in the city following a nine-month suspension. The company's stock rocketed 25.8% to HK$0.61 in its first day of trading after a nine-month suspension. Country Garden, once China's largest property developer, reported losses of US$24.3 billion in delayed 2023 financial results last week. That is a huge jump from the $825 million (about R15 billion) loss it recorded in 2022 as China's real estate sector slumped. Country Garden has said it had "attributable interest-bearing liabilities" of approximately $16.4 billion in relation to offshore debts as of year-end 2023. The firm also said it had lost $1.8 billion in the first half of 2024, according to interim results. - AFP
Diversified metals processor Jubilee announced it has received regulatory approval for a new power supply agreement in Zambia, with power delivery commencing on 20 January. The group, which operates in SA and Zambia, has been hit hard by power outages related to a drought in the latter country, where Jubilee has copper interests. The additional power supply agreement, executed with a new broad based power provider, secures access to a distributed power base from multiple sources of generation, minimising the reliance on a single supply source and mitigates risks from localised power network distribution limitations, Jubilee said. The power supply has been delivered at a cost comparable to the company's existing power agreement, offering both economic and operational stability, it said.
-FIN24
Yokohama receives approval to acquire Goodyear
Yokohama Rubber Company received approval for its acquisition of an SA business owned by Goodyear Tyre & Rubber. The business operates in the replacement tyre sales channel only and supplies non-agricultural off-highway tyres specifically related to construction, mining, and ports, the Competition Commission said in a statement. The regulator believes the proposed transaction is unlikely to substantially prevent or lessen competition in any market and does not raise significant public interest concerns.
-FIN24
Moses Madondo to head Thungela Resources
Pure-play coal miner Thungela Resources said on Tuesday it has appointed De Beers Managed Operations CEO Moses Madondo as its CEO designate with effect from 1 August. Madondo is set to replace current CEO July Ndlovu, who will reach the retirement age of 60 in July. Madondo's position with De Beers put him at the helm of the diamond miner's mining operations in SA and Canada, and before taking that position in 2021, he had spent over two decades with AngloGold Ashanti. He has also served on several divisional boards and as a board member of the Minerals Council of South Africa and Rand Refinery, Thungela said in a statement, adding that he has demonstrated strong operational and technical skills. The UCT- and Harvard-educated Madondo holds an executive MBA, a postgraduate diploma in management practice, and a bachelor of science in mechanical engineering.
-FIN24
Nigeria hikes tariffs for mobile operators
Africa's most populous nation Nigeria has hiked mobile tariffs by up to 50%, with the first increase in over a decade following lobbying efforts from MTN amid currency pressures and elevated inflation. The Nigerian Communications Commission (NCC) said in a statement on Monday that will be granting approval for tariff adjustment requests by network operators in response to prevailing market conditions. The adjustment, capped at a maximum of 50% of current tariffs, is lower than was requested by some. Tariff rates have remained static since 2013 despite the increasing costs of operation faced by telecom operators, including MTN, whose unit in the country remains technically insolvent. MTN was hard hit by a massive devaluation in the Nigerian naira in 2024 put pressure on dollar-denominated leases in the country. This has prompted turnaround efforts optimising its capital expenditure and reducing dollar exposure, including through renegotiating tower releases, while it has made clear it is lobbying hard for a hike in mobile tariffs, seeking about 100%.
Maputo port sees reduction in traffic
Volumes at the Maputo-Matola port complex, a significant site for SA's exports, dipped 1% to 30.9 million tonnes in 2024 as political unrest in Mozambique took its toll, the Maputo Port Development Company (MPDC) said on Tuesday. The slight decrease in total volumes handled to 30.9 million tonnes was primarily due to the post-electoral protests and road blockages in the Maputo corridor, the MPDC said in a statement, with border closures and more difficult road conditions persisting for a month in total. The rail corridor from South Africa to Mozambique was also affected by the protests and blockages, paired with a derailment in October-November, which led to a shutdown of the line for a month, it said. The border was first closed in November last year and then several times again as protests flared. According to the Minerals Council of South Africa, just over half of SA's chrome exports went through Maputo in 2023 and about 10% of coal.
-FIN24
Clicks' turnover grows to R18.2 billion
Pharmacy group Clicks reported that group turnover for the 20 weeks to 12 January grew 8.1% to R18.2 billion, while retail sales, which includes Clicks, the Body Shop and Sorbet corporate stores, rose 8.7%. But comparable store sales growth at the JSE-listed pharmaceutical group slowed to 5.9% from 8.4%, while selling price inflation averaged 3.5% from 7.5%, though volumes still grew 2.4%. Key factors driving the softer performance included the temporary delay in the issuing of licences to Clicks while it awaited the sale of its medicine manufacturing business Unicorn Pharmaceuticals, analysts said.
-FIN24
UniCredit not in rush over Commerzbank takeover
Italy's UniCredit bank said on Tuesday it would not rush a possible takeover of German rival Commerzbank and was willing to walk away but would wait first for the German election's outcome. "Given that the emotions are what they are, let's wait for elections," UniCredit chief executive Andrea Orcel said during a Bloomberg event on the sidelines of the annual meeting of global elites at the World Economic Forum in Davos, Switzerland. "Let's wait for things to calm down and then let's have an opportunity to instead of talk about perceptions, talk about facts, truth about figures, talk about the merits of the deal," he added. Germany heads to the polls next month after the collapse of Chancellor Olaf Scholz's ruling coalition late last year. Scholz is widely expected to be pushed out of office. - AFP
Country Garden shares climb in excess of 25%
Shares in Chinese property giant Country Garden soared more than 25% in Hong Kong on Tuesday, after the embattled firm resumed trading in the city following a nine-month suspension. The company's stock rocketed 25.8% to HK$0.61 in its first day of trading after a nine-month suspension. Country Garden, once China's largest property developer, reported losses of US$24.3 billion in delayed 2023 financial results last week. That is a huge jump from the $825 million (about R15 billion) loss it recorded in 2022 as China's real estate sector slumped. Country Garden has said it had "attributable interest-bearing liabilities" of approximately $16.4 billion in relation to offshore debts as of year-end 2023. The firm also said it had lost $1.8 billion in the first half of 2024, according to interim results. - AFP
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