Cape Times 2022-03-28

Edward West edward.west@inl.co.za SHAREHOLDERS holding about 20 percent of Steinhoff International Holdings shares on Friday shot down one of the two options its management may have had to further the restructuring of the global retailer, the issuing of shares to reduce its high debt level. At the annual meeting in Amsterdam and online, shareholders voted strongly against resolutions that would have given its directors powers to authorise shares, such as for a rights issue to raise capital. Chief executive Louis du Preez said in the meeting that, following the accounting irregularities and fraud that occurred until 2017, which saw Steinhoff go into “freefall” with many believing its liquidation to be inevitable, a three-stage restructuring was implemented involving arrangements with creditors, dealing with litigation issues and finally, restructuring…

Siphelele Dludla siphelele.dludla@inl.co.za FINANCIALLY-constrained consumers may soon get a reprieve from rising fuel and food prices as the government is currently exploring a variety of options to mitigate the petrol price pressure. The Cabinet on Friday said it was considering the impact the current conflict between Russia and Ukraine will have on the country’s economy, as its effects are being felt on financial markets and prices across the world. The global oil price has escalated since Russia invaded Ukraine, reaching a 14-year high of $139 (R2 019) a barrel earlier this month. The price of petrol is expected to surge with another record increase of R2 or more to take petrol to R24 a litre in April, pushing up consumer inflation, as global oil prices remain elevated above $100…

Dieketseng Maleke dieketseng.maleke@inl.co.za ANGLO American has announced that it has sold its remaining shareholding in Thungela Resources in a R1.67 billion deal, which will see the diversified miner divest its coal mining business. The group on Friday said it sold a remaining 8 percent stake in Thungela through an accelerated bookbuild. Thungela shares were sold at R154 per share, representing a 12 percent discount to the closing share price on March 24, 2022, which stood at R175. Anglo has been slowly disposing its remaining interest in Thungela since demerging the company in June last year, in efforts to exit from the South African mining operations. “At the time of the demerger of Thungela to Anglo American’s shareholders, which was completed in June 2021, Anglo American stated its…

TWO UNRELATED events that occurred this month have raised the question whether South Africa’s long professed ambition to create a Sovereign Wealth Fund (SWF) is just a pipe dream? The Independent Communications Authority of SA concluded its radio frequency spectrum auction, raising more than R14.4 billion for the national fiscus. This inaugural radio frequency spectrum auction is one of the most important structural reforms to reduce the cost of communication and encourage investment in the digital economy. Meanwhile, the Solidarity Fund also wrapped up its operations after two years, with under R3.8bn in relief funding having been received while just under R3.3bn was dis- bursed. The fund was set up with a very specific and limited mandate and was never intended to be a long-term solution, rather an urgent,…

By Corrie Kruger ACCORDING to an article on Financial Trends Forecaster dated March 19, 2022, titled Will Russian Sanctions Open a Can of Worms, the current financial sanctions against Russia are totally unprecedented. “Although sanctions have been used against terrorists, they have never been used like this against a sovereign state. The US and its allies have unleashed all sorts of economic sanctions against Russia. “But there is a downside to all these sanctions, not only against the nation but also against key players within the country. If the US can sanction foreign individuals, what could they do to citizens if they wanted to?” The same concerns are valid for South Africa as our banks are managed and adhere to the same international accepted prin- ciples through their affiliation to…

Chevon Booysen chevon.booysen@inl.co.za THE Cape Muslim and Slave Museum has received the honour of Preferred Heritage Destination at this year’s Golden Shield Heritage Awards. The museum was established in September 2021 at the Castle of Good Hope. It received the award from the National Heritage Council (NHC) for its contribution to heritage preservation, protection and upliftment. Founder and curator Igshaan Higgins said the museum defends the freedom to procure and create content and exhibit such works which highlight the privilege of living in a country where experiencing such exhibits is a constitutional right. “This is definitely a great accolade for the museum, but moreover an accolade that belongs to Cape Town and its people. Our museum is actually a showcase for social cohesion in this country. To receive such an…