COMPANY NEWS IN BRIEF

Telkom sale of masts approved

The Competition Tribunal has approved the sale of Telkom's masts and tower business Swiftnet to private equity firm Actis and Royal Bafokeng Holdings. The Competition Commission, which investigates and advises, had already recommended the deal be approved in August, saying it is of the view it is unlikely to substantially lessen or prevent competition in any market. Actis and Royal Bafokeng formed a new entity, TowerCo, to acquire the stake. Royal Bafokeng Holdings, the investment arm of the Royal Bafokeng nation, will hold no less than 30% of TowerCo. The acquisition is based on an enterprise value of R6.75 billion, though this will be subject to adjustments, including those related to debt, capital expenditure and working capital movements. All Telkom shareholders voted in favour of the deal in May. Government owns around 40% of Telkom in its own name, while the Public Investment Corporation owns over 13%. To deal with public interest concerns, parties have made "procurement commitments to firms that are either small/medium enterprises or that are owned by historically disadvantaged persons for a period of five years from the merger implementation date," the commission said in August.

-FIN24-

Cashbuild reports 26% decline in headline earnings

SA's largest building materials retailer, Cashbuild, reported a 26% fall in headline earnings for its year to end-June to about R200 million hit by uncertainty in the run-up to the election and continued pressure from high interest rates and a sluggish economy. While conditions are expected to remain challenging, it is eyeing a boost from interest rate relief and a "long-overdue" pick-up in infrastructure spending from the government of national unity. The results were also affected by an additional week for 2024, given that the group reports on the last Sunday of the month, and excluding this effect, headline earnings fell 41%. However, it is encouraged by an improved fourth quarter improvement, and sales lifted 5% post year-end.

-FIN24-

Foschini sees lift in profits

Foschini owner TFG said on Wednesday while previous clearance efforts and a late winter start in SA have weighed on its sales, this has been offset by a pickup in its profit margins. TFG Africa achieved a record gross profit result of R5.9 billion in the 21 weeks to 24 August, the group said in a trading update, rising about 4% despite a decline in sales of 1%. TFG London's gross margin also picked up, though sales were over 12% lower in pound terms, due to continuing headwinds from low consumer confidence, while macroeconomic conditions also weighed in Australia, where sales fell almost 4% in local currency terms.

-FIN24-

Management changes effected at Lift

The founding management team of the LIFT - including former kulula.com CEO Gidon Novick - have stepped down from their management roles. Novick, along with former Uber Africa executive and LIFT CEO Jonathan Ayache and LIFT's chief financial officer Justin Gordon, will remain board members and shareholders in the airline, LIFT said in a statement. Novick was co-CEO of kulula.com operator Comair from 2001 to 2011. He co-founded LIFT with Global Aviation, a so-called wet lease company which offers fully crewed, maintained and insured aircraft (ACMI) to established airlines. "As of 1 September 2024, Global Aviation, which currently operates the ACMI division, has assumed management responsibility for the airline," LIFT said in a statement. LIFT did not confirm whether new executive appointments have been made to replace the CEO and CFO.

-FIN24-