Top deals making headlines this week

In focus this week: Steinhoff, Tongaat Hulett, AngloGold, TymeBank and more. 

AngloGold

AngloGold Ashanti, a company that emerged from the South African mining empire created by Ernest Oppenheimer, is pivoting toward the Americas to develop more profitable assets.

The world’s No. 3 gold producer is studying projects in Colombia and Nevada, Chief Executive Officer Kelvin Dushnisky (pictured) said in an interview with Bloomberg in Cape Town, where he’s attending the African Mining Indaba.

“The market will always be receptive to good projects, and these are quality assets,” Kelvin said. “The reason we want to bring them into production is part of our objective to bring in new, longer life, lower-cost operations.” Read more here.

TymeBank

Investment holding company African Rainbow Capital (ARC), which was founded by billionaire South African businessman Patrice Motsepe, announced on Sunday that TymeBank, in which ARC has a majority shareholding, has entered into a partnership with the Zion Christian Church (ZCC) to offer a banking proposition to its members.

The ZCC is the largest African-initiated church in Southern Africa, with membership of about 12 million. About nine million ZCC members are based in South Africa of which about six million are adults. The partnership with TymeBank introduces the ZCM (Zion City Moria) Membership Card, which will serve as both a membership card as well as the member's bank debit card. Read more here.

Tongaat Hulett

Tongaat Hulett share price has slumped by more than 65 percent on the Johannesburg Stock Exchange on Monday. 

This comes after the bourse lifted the suspension of the agriculture and agri-processing company following an accounting scandal that led to the inflation of its assets and profits.  However, the share price fell to its all-time low to R4.31 a share, declining from R13.21 when the share price was suspended about seven months ago.  The lifting of the suspension comes after Tongaat released its results for the six months to end September on Friday, which reflected a reduction in losses.  Read more here

Steinhoff

Steinhoff's share price jumped 33 percent since Monday 3 February following a report of a possible takeover bid for its European retail group, Pepco Group.

Pepco owns the cut-price retailer Pepco, which has more than 1 600 stores in Central and Eastern Europe, as well as the UK chain Poundland, which famously sells branded products for a pound, and Dealz, which does business in Ireland, Poland and Spain. 

Sky News reported on Monday that a former owner of Poundland is plotting a takeover deal with two private equity firms, in a transaction that could value Steinhoff's European company at more than €4.5 billion (R74 billion). Read more here.

Qatar Airways

Qatar Airways is in talks to buy a 49 percent stake in Africa's RwandAir, and is interested in doubling its holding in LATAM Airlines Group to 20 percent, its CEO said on Wednesday.

A stake in an African airline would widen its reach in one of the world's fastest-growing aviation regions, and potentially help it bypass restrictions imposed on it by some Arab states. “We are very tough negotiators ... we will take our time to negotiate,” Qatar Airways CEO c al-Baker was quoted in a report by Reuters. Read more here

Invicta

The share price of Christo Wiese’s industrial holding company Invictafell to its lowest in 16 years on Tuesday morning, after saying it is considering shaking up its capital allocation structure, and may tap shareholders or dispose of non-core assets.

The company, which has subsidiaries that include distributors of capital equipment, spare parts and engineering consumables in Southern Africa, is also considering realigning debt, and conducting specific inventory reduction programmes, it said. Read more here

Barloworld

Logistics and fleet management group Barloworld said on Monday it had agreed to buy two equipment businesses in Mongolia for about R3.252 billion. Barloworld will buy 100 percent of Wagner Asia Equipment and 49 percent of SGMS in the mineral-rich country.

The target companies are engaged in the business of selling and distributing construction equipment, mining equipment, power systems and related goods and services in Mongolia, primarily under the Caterpillar brand, Barloworld said. Read more here