Naspers finds one bargain internet stock: its own 30 Oct 2020 The $82 bln South African group and its Amsterdam-listed offshoot have lagged behind a surge in big technology stocks this year. A $5 bln buyback highlights the discount to its stake in China’s Tencent and shows it won’t chase overpriced deals. Other investors should take notice.
Ethiopian swoop would seal South Africa’s descent 4 Sep 2020 Pretoria’s bankrupt state airline may secure a parachute from Addis Ababa, a stunning reversal of fortunes from the 1990s. After apartheid, South African firms blazed trails across the continent. With corruption and dogma hobbling their home base, the tables are turning.
Sampo takes pricey UK joyride with Hastings deal 5 Aug 2020 The Finnish group has made a $2.2 billion offer for the London-listed motor insurer. A 42% premium looks chunky given few cost savings on offer. CEO Torbjorn Magnusson needs to boost revenue in the cut-throat British market and swerve a likely increase in claims to avoid a crash.
Africa debt holiday may be better for bondholders 14 Apr 2020 The continent wants to delay $40 bln of external payments. Convincing the IMF and China will be easier than private creditors, who are owed half. With Covid-19 upending normal rules, though, granting relief is the right move. It will also help avoid costlier chaotic defaults.
Corona Capital: Bailout fees, Distressed junk 25 Mar 2020 Concise views on the pandemic’s corporate and financial fallout: Wall Street brushes off its bailout pitchbooks. And high-yield debt suggests a deluge of defaults.
Virus gives Africa a good debt default excuse 23 Mar 2020 The continent faces Covid-19 largely on its own as other countries strain to help their own citizens. A young population helps; weak health systems and stretched public finance don’t. Cash-strapped countries like Zambia and Ghana may stop paying what they owe bondholders.
South Africa’s spending cuts border on hara-kiri 27 Feb 2020 The government wants to lop 6% annually off public sector wages to rein in the biggest deficit since the apartheid era. That’s heroic and points to a dangerous showdown with powerful unions. Even if it prevails, widespread protests will darken an already grim economic picture.
Animal spirits temper gold miners’ virus appeal 25 Feb 2020 An outbreak of the coronavirus in Italy boosted the price of bullion. While producers of the yellow metal stand to gain from higher prices, a global pandemic could hit some production. The bigger risk is CEOs squandering the windfall on unprofitable ventures or expensive M&A.
Naspers rejig only nibbles at Tencent discount 22 Jan 2020 The African tech group has sold $1.7 bln of shares in its Amsterdam spinoff Prosus, whose main asset is a $150 bln stake in the Chinese web giant. Using the funds to buy back stock has merit, but Naspers will have to be bolder if it wants to close the Dutch firm’s valuation gap.
Anglo’s tricky fertiliser bet has political hedge 8 Jan 2020 The miner is sinking $500 mln to buy Sirius’ troubled potash project in northern England. It will need to stump up an extra $3 bln to extract the mineral, whose price is murky. At least PM Boris Johnson, keen to revive poorer UK regions, should support Anglo American’s plan.
South Africa’s Absa opts for safety-first recovery 6 Jan 2020 The $9 bln group made former central bank deputy Daniel Mminele its new CEO. Like other local lenders, the former Barclays unit needs growth from elsewhere on the continent to offset domestic weakness. Installing a career regulator suggests little appetite for a high-risk charge.
South Africa heads for year of living dangerously 29 Nov 2019 Surging debt payments are squeezing public spending. President Cyril Ramaphosa will try to shrink bloated state firms like power utility Eskom, triggering ugly showdowns with unions that may hit the economy. Failure to face them down would douse reform hopes and hurt even more.
South Africa boozes in last chance debt saloon 12 Nov 2019 A ballooning deficit, dismal growth and unprofitable state firms are putting the Rainbow Nation’s debt on an unsustainable course. Low external borrowing makes a currency crisis unlikely. But a dependence on local bond markets can only delay the reckoning.
Naspers spinoff wades into UK food delivery fight 22 Oct 2019 Newly listed Prosus slapped down a 4.9 bln pound order for Just Eat, beating rival Takeaway.com’s all-share bid. Though the UK delivery group rejected the offer, its $120 bln suitor has deep pockets. Rivals like Uber Eats and Deliveroo have a new competitor to worry about.
Corporate South Africa feels expansion’s downside 5 Sep 2019 The nation’s banks, retailers and telcos have spread across the continent. With rioters in Johannesburg now attacking African migrants and their businesses, they’re facing boycotts in Nigeria and Zambia. That’s a problem for the likes of MTN that get lots of revenue from abroad.
Japan is laggard in China-led scramble for Africa 30 Aug 2019 Tokyo wants its companies to pour more money into the continent, partly to counter Beijing’s influence. The U.S. is beefing up overseas finance for similar reasons. But with China’s $43 bln of Africa investments set to overtake America’s, rivals have a lot of ground to make up.
Old Mutual row shows merit of the quiet CEO payoff 31 Jul 2019 The South African insurer’s shares lost 5% after sacked boss Peter Moyo convinced a court he should get his job back, at least temporarily. A public slanging match looks damaging for all concerned. There’s a reason why warring boards and bosses usually settle disputes quietly.
Naspers’ double discount 15 Jul 2019 The South African group is spinning off its stake in China’s Tencent into an Amsterdam-listed subsidiary. Will this narrow the persistent valuation gap between the two?
Naspers hopes two discounts are less than one 15 Jul 2019 The South African group is persistently worth less than its $135 bln stake in Chinese web giant Tencent. Listing assets in Amsterdam might shrink the gap, but the parent will still suffer a markdown. Investors should only click “accept” if the combined shortfall is much smaller.
Africa growth outlook puts democrats on back foot 3 Jul 2019 Ballooning populations mean per capita wealth is falling in key democracies Nigeria and South Africa. That’s a recipe for trouble. Alongside a stronger performance by autocratic Egypt, it also makes worrying reading for those who believe a democratic Africa is a more stable one.