| Wednesday 20 October 2021 Good morning Voornaam,
Ascendis Health closed 19.4% higher yesterday after releasing an update that the company has received a number of "unsolicited, non-binding and highly conditional proposals" for various deals related to the remaining assets. In other words, many people would like to help mop up what is left of Ascendis. It's anyone's guess how this story ends, but it isn't impossible that Ascendis may end up selling off everything and returning cash to shareholders.
SAB Zenzele Kabili, the B-BBEE structure related to South African Breweries (part of AB InBev) is now trading at R82.50 a share. At one point the market sent it as high as R180, which professionals on Twitter warned was utter nonsense because even R82.50 is above the fair value of the structure. Some people always know better though, with those shareholders now down 55%.
The latest announcement is that SAB has advanced an amount of R12 million to the structure to assist with an immediate liquidity shortfall in anticipation of receiving dividends from AB InBev. This is a 2-year facility at a fixed rate of 4.1% per annum.
It saddens me that so many people rush into these structures without understanding them.
Wesizwe Platinum closed a whopping 63% higher yesterday. The often-forgotten platinum company with a market cap of nearly R2bn announced that a competent persons' report is now available for the Bakubung Mine project. The market clearly liked it.
Tiger Brands has announced that it will have a secondary listing on A2X, which means that trading can take place on either A2X or the JSE. A2X is starting to eat a significant part of the JSE's lunch in the secondary market, a trend that is worth keeping an eye on.
The first of toda y's feature articles takes a look at CMH's leaner operating model, which has resulted in a massive increase in HEPS even vs. 2019. The used car market has been buoyant and the rental car business is firmly back in the green, all of which is good news for CMH shareholders.
Then we have BHP, the mining giant that has been sharply sold-off recently along with other iron ore businesses. The company has released a quarterly operational update which has reaffirmed the guidance for the full financial year.
We have another article today from Jaltech, an a lternative investments house that offers exposure to a basket of crypto assets via a single investment. Those of you who need forex services should also check out the forex update from Currency Assist.
With that, I wish you an excellent Wednesday.
The Finance Ghost
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