| Monday 28 March 2022 Good morning Voornaam,
After unbundling Thungela in 2021 and unleashing a company that has generated huge returns for shareholders, Anglo American held on to an 8% stake and committed to keep it for at least six months. That worked out very well in the end for Anglo, as the stake has been sold via a bookbuild placing to institutions at a price of R154 per share, a 12% discount to the closing price on 24 March and vastly higher than the IPO price. Anglo American realised proceeds of R1.67 billion from the sale. The six-month period actually ended in December, but Anglo American waited until Thungela's results announcement before pulling the trigger. If that wasn't the case, the company may have been accused of breaching market rules as a Thungela insider. Of course, it paid to wait in this scenario!
Conduit Capital is invested primarily in the insurance industry , with a few investments outside of this vertical like real estate brokerage Century 21 South Africa. The core investment is the Constantia Insurance Group, a niche insurance company operating in South Africa and 18 other African countries. Constantia has dominant positions in health and medical malpractice insurance. Key metrics have improved and the business generated cash from operations of R30.7 million in the six months to December 2021. Despite this and due to mark-to-market investment movements, the headline loss per share deteriorated by between 17.9% and 36.9%.
Merafe had another great day on the market with a rally of 9.5% in response to the news that the European benchmark ferrochrome price for the second quarter of 2022 has been settled at 216 US cents per pound, representing a 20% increase from the first quarter of 2022. Merafe's share price is up nearly 55% this year alone.
Eastern Platinum doesn't trade o ften and has a bid-offer spread that you could drive a mine truck through. The company has released results for the year ended December 2021. Revenue increased by 21.5% but the company still couldn't make it into the green, with a headline loss of USD0.01 per share. That's an improvement on the loss of USD0.09 in the prior corresponding period. 2022 will be an important year for the company, with several important operational projects in the pipeline and the restart of the Zandfontein underground operations at the Crocodile River Mine.
RMI has reminded the market that it won't be pursuing a rights offer anymore, as the sale of 30% in Hastings Group raised enough cash. The unbundling of a 25% stake in Discovery and 26.8% in Momentum Metropolitan will be completed by 25th April.
Putprop is acquiring a further 12.03% in Pilot Peridot Investments for R23.4 million, taking the total holding to 73.24%. Pilot Peridot's only as set is a 50% stake in Summit Place, a mixed-use property development in the Menlyn area of Pretoria.
Hyprop's proposed acquisition of four European properties from Hystead was met with a resounding shareholder approval at the general meeting. 99.92% of votes were cast in favour of the deal.
Oceana has finally released its annual results and integrated annual report for the year ended 30 September 2021. It has been a tumultuous few months for the company after numerous issues and executive changes. Shareholders will hope for stability going forward.
Raubex Group and Bauba Resources have issued a joint circular for Raubex's offer to Bauba shareholders of R0.42 per share. Assuming all goes to plan with approvals, the deal will be wrapped up by the end of May.
Today's feature articles include a piece on Gemfields' record revenue performance in 2021 and Rebosis' tough pill to swallow regarding the property portfolio disposal. There's still a potential deal on the table - it's just a lot smaller than it used to be!
There's also a brand-spanking-new Magic Markets podcast to entertain you today. In Episode 68, Mohammed Nalla and I talked about burgers and fairy tales. No jokes, we really did. Well, we specifically talked about how to invest in them! Don't miss this f un and insightful show.
Finally, Chris Gilmour gives us the lay of the land with a summary of the macroeconomic and political news that is moving the markets.
That's it for today - have a great Monday!
The Finance Ghost
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Local and Offshore Market News |
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