Top deals and corporate moves making headlines this week

In focus this week: EOH Holdings, Glencore, Private Property, Aveng and more.

Glencore

Glencore, the JSE-listed diversified natural resource company, said it expects to finalise its acquisition of Chevron South Africa’s assets by the end of June 2019, according to a report by Business Day.

“We are going through the process there and expect it to be concluded in the first half of the year,” said Glencore’s SA-born CEO, Ivan Glasenberg (pictured) is quoted by Business Day.

Black economic empowerment consortium, Off The Shelf Investments (OTS), announced in 2018 that it had acquired Chevron South Africa’s (CSA) assets in a deal valued at $1 billion. Read more here

Aveng

JSE-listed construction and engineering firm, Aveng, has agreed to sell its precast concrete products manufacturing business, Infraset, to the Colossal Africa Consortium for R200 million.

Colossal Africa Consortium is a newly formed wholly black-owned investment special purpose vehicle that is owned by Isongo Investments and Colossal Africa Infrastructure. Colossal Africa Infrastructure has interests in the materials supply sector, whereas Isongo is a rail company providing specialised services and products for railway industries. Read more here

Private Property 

Private Property South Africa has acquired the Property Buyer Show, South Africa’s property expo, from media company Spintelligent.

The transaction became effective on February 1 and is part of a new strategy initiated by Private Property’s recently appointed CEO, Amasi Mwela, to expand and enhance the service it offers its customers.

The Property Buyer Show brings all role-players in the industry together in one place to offer first-time buyers and investors access to the information and expertise they need to make an informed decision. Read more here

Rebosis Property Fund

South African real estate company Rebosis Property Fund has, through its subsidiary Ascension Properties, entered into a sale agreement to dispose seven office properties for R696 million.

The properties will be sold to Fortune Capital, which is 100 percent black-owned diversified investment group.The sale is part of Rebosis’ strategy to offload more office properties to focus on shopping centres. Read more here

AngloGold Ashanti

AngloGold Ashanti, the world’s number three gold producer, said that it has started a process to sell its Cerro Vanguardia mine in Argentina.  

This is part of a plan by AngloGold’s new CEO Kelvin Dushnisky to streamline the company’s assets in the six months he has been at the top job. The Cerro Vanguardia mine in Argentina joins Sadiola in Mali on AngloGold’s plan to sell the mines as the company seeks to focus on its best operations. Read more here

Exxaro

South Africa’s largest coal producer, Exxaro Resources, said on Monday that it had sold back its 26 percent stake in Tronox Sands LLP to the company for R2.06 billion in cash.

Exxaro announced last year that it would be selling the remainder of its stake in the multinational mineral sands miner and processor following the proposed re-domiciliation of Tronox to the UK. The miner started reducing its stake after saying that the investment was no longer core, saying it was waiting for the right time to sell its remaining shares. Read more here.

Balwin Properties

South Africa’s largest turnkey sectional-title developer, Balwin Properties, has announced that Balwin Rentals has exercised its right to acquire 96 residential Rental Apartments in the Greenpark development for R57,14 million.

In terms of the rental agreement, the 4 544 rental apartments will be sold in phases to Balwin Rentals at an approximate 30 percent margin. Balwin will retain a 25 percent interest in Balwin Rentals, providing the company with annuity income.

Proceeds from the sale of these rental apartments will be reinvested into the existing development pipeline of Balwin.

“We believe that the rental model initiative in its current form provides us with significant value-unlocking opportunities without any cashflow implications. We will continue with our current model of developing, selling and handing over developments in phases to mitigate risk,” said Balwin CEO Steve Brookes.

 

Corporate moves

Telkom

South Africa’s telecommunications company, Telkom, has announced that Jabu Mabuza has resigned as an independent non-executive director and chairman of the Telkom board, ending a more than seven-year tenure.

The resignation of Jabu, a well-respected business man, is effective May 31, 2019, and he will be replaced by Sello Moloko.

Sello, an independent non-executive director on the Telkom board, is the non-executive chairman of Sibanye-Stillwater Limited and has chaired the board of Alexander Forbes, said Telkom.

EOH Holdings

Shares of South African technology services group EOH on the JSE rose as much as 17 percent on Thursday, the day after the company announced that two of its founders resigned in a board shake-up.

EOH announced that the chairman Asher Bohbot, the firm’s CEO for 19 years, will step down at the end of this month and remain on as an adviser until July 31.

Other departures from EOH include Rob Sporen, also a founding member of EOH, Tshilidzi Marwala, a non-executive director who has served on the board for 11 years, and Tebogo Maenetja, the human resources executive director, who will leave at the end of April. Read more here