Top deals and corporate moves making headlines this week

In focus this week:  MTN Rwanda, KPMG South Africa, PSG Konsult, Rio Tinto and more.

Pepkor 

Retail group Pepkor, formerly known as Steinhoff Africa Retail, has decided to fund and build its credit books for the JD Group and Capfin, and has agreed to terminate its existing commercial relationship with Century Capital (Fulcrum).

It had an arrangement with Fulcrum, a company alleged to have close ties with former Steinhoff CEO Markus Jooste. Pepkor is attempting to create distance from scandal-hit Steinhoff Group and Markus. Pepkor will take control of the funding of financial services provided to Pepkor customers, and maintain the same profitability insofar as it relates to Pepkor’s financial services operations.

Mergence Group

Mergence, the financial services boutique group, has acquired a 51 percent stake in BFG International Composites (Africa). Bahrain-based BFG International will retain the balance of the shares in BFG Africa.  The value of the deal was not disclosed.

The deal would give BFG Africa a local Black Economic Empowerment partner as it seeks to aggressively expand its infrastructure, mining and automotive transport and architectural footprint on the Africa continent.

PSG Konsult

PSG Konsult, the wealth and asset management unit of PSG Group, said it has met all conditions to its acquisition of a short-term face-to-face advisory insurance brokerage business from Absa Insurance and Financial Advisors Proprietary Limited.

PSG Konsult announced that “all conditions precedent” to the deal have been met and that the deal will be effective from December 1, 2018.The deal was first announced in February 2018. The insurance brokerage business consists of 62 advisers and over 28 000 clients.

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MTN Rwanda

MTN Rwanda has secured a Rwf50 billion (R774 million) loan from a syndicate of eight local banks for the telecommunications company to expand and modernise its network and related IT systems. MTN Rwanda announced on Thursday that the seven-year loan would fund its expenditure program from 2018 until 2020.

The loan was funded by Ecobank Rwanda, Cogebanque, BPR Atlasmara, I&M Bank, Bank of Kigali, Kenya Commercial Bank, Equity Bank, and GT Bank. Read more here

Intu Properties

Intu Properties said a group of investors does not intend to proceed with a formal £2.85 billion (R50 billion) offer for to acquire the London and Johannesburg-listed shopping mall owner amid ongoing “uncertainty around current macroeconomic conditions and the potential near-term volatility across markets.”

The group of investors comprising Peel Group and Olayan Group, which together hold a 30 percent stake in Intu Properties, and Brookfield Property Group, increased their cash takeover proposal from 200.4 pence per share to 215 pence per share.

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Rio Tinto

Diversified miner Rio Tinto has signed a binding agreement with China National Uranium Corporation (CNUC) to divest of its 68.62 percent stake in the Namibia-based Rössing uranium mine for up to $106.5 million (R1.5 billion).

The company announced on Monday that the purchase price will comprise an initial cash payment of $6.5 million (R89.4 million), payable at completion, and a contingent payment of up to $100 million (R1.4 billion) following completion. The deal is expected to be completed in the first half of 2019.

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Exxaro 

South Africa’s Exxaro Resources has agreed to cut ties with Tronox by selling its 24 percent remaining stake in the New-York-listed mineral sands producer.

Under the agreement, Exxaro will sell its 24 percent stake to Tronox or to third parties, the company announced on Tuesday.Tronox is a global leader in the mining of titanium-bearing minerals sands and the production of titanium dioxide listed on the New York Stock Exchange.

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Kibo Mining

Minerals exploration and development company Kibo Mining said it has completed the sale of Kibo Nickel to Katoro Gold, an exploration firm, in an all share transaction following receipt of relevant regulatory approvals.

Kibo – the resources company based in Ireland with a primary listing on the London Stock Exchange’s Alternative Investment Market (AIM) and a secondary listing on the JSE – said the sale of the nickel asset is in line with its strategy to focus on the development of its three energy projects. This is as the company has ambitions of becoming a major regional power player in Africa.

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Tawana Resources 

The shareholders of JSE-listed Tawana Resources have approved a merger with Alliance Mineral Assets, the former company announced on Tuesday. The company announced that 92.6 percent of shareholders had voted in favour of the merger at a scheme meeting held in Perth, Australia. Tawana Resources is also listed on the Australian Securities Exchange (ASX).

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Corporate moves

KPMG South Africa

KPMG’s South African unit has named Ignatius Sehoole (pictured) as chief executive, as the auditing firm attempts to retain its clients after being implicated in political scandals.

Ignatius, who is the current deputy chief executive PwC’s domestic unit, is expected to take up the CEO role on May 1, 2019. He will take over from the Nhlamulo Dlomu, who stepped down in October 2018 to take up a global role at KPMG and to allow a new leader to restore the auditor’s reputation.

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