BUSINESS - The African Mirror

Feb

06

2024

South Africa’s MultiChoice rejects Vivendi’s Canal Plus buyout offer

BUSINESS

SOUTH Africa's MultiChoice Group said it will not continue talks with Vivendi's Canal Plus after the board concluded that its offer significantly undervalues the company. Canal Plus, a top shareholder in MultiChoice, had on Thursday offered 105 rand ($5.55) per share for every MultiChoice share it does not already own. Canal Plus said the offer - worth 31.7 billion rands according to Reuters calculations - was a 40% premium to MultiChoice's closing share price of 75 rands on January 31. MultiChoice said in a statement that a recently conducted exercise valued the group significantly above the offer price, excluding any potential synergies which may…

Feb

04

2024

By CHRIS MFULA

Zambian officials held debt talks with Chinese banks last week

BUSINESS

ZAMBIAN officials went to China last week to discuss debt restructuring with representatives of the Export-Import Bank (EXIM) of China and some Chinese commercial banks, the secretary to Zambia's Treasury said. Felix Nkulukusa said Zambia was on course to reach a new agreement after its official creditors, including China EXIM, rejected a preliminary restructuring deal for its Eurobonds in November. Zambia defaulted on its sovereign debt in 2020 and its debt restructuring under the G20's Common Framework process has been beset by delays. Under the framework, debtor countries are meant to agree on comparable restructuring deals with official and commercial…

Feb

04

2024

By The African Mirror

Tanzania’s TPDC doubles gas field stake in deal with Maurel & Prom

BUSINESS

STATE-RUN Tanzania Petroleum Development Corporation (TPDC) has paid $23.6 million to double its shareholding in the Mnazi Bay natural gas field under an agreement with French energy company Maurel & Prom. The Mnazi Bay gas field, in the Mtwara region of the country's south, has an estimated 641 billion cubic feet of recoverable natural gas reserves and contributes nearly half of the gas used to generate electricity in the East African country. Mussa Makame, TPDC's managing director, said in a televised signing ceremony on Saturday the company had doubled its ownership in the asset to 40% after acquiring an additional…

Feb

03

2024

By The African Mirror

African countries are struggling with high debt, demands to spend more and collapsing currencies: the policy fixes that could help

BUSINESS

HIGHLY indebted African countries are facing stark trade-offs between servicing expensive debt, supporting high and growing development needs, and stabilising domestic currencies. Government debt has risen in at least 40 African countries over the past decade. As a result, some are experiencing a bad combination of high debt, and elevated development spending needs amid budget shortfalls and unfavourable exchange rate pressures. JONATHAN MUNEMO, Professor of Economics, Salisbury University These issues have become more pressing since 2022, when persistently high inflation prompted major central banks around the world to embark on the most aggressive monetary tightening campaign in decades. Monetary policy…

Feb

02

2024

By NQOBILE DLUDLA

Vivendi’s Canal Plus offers to buy rest of South Africa’s MultiChoice

BUSINESS

VIVENDI'S Canal Plus has offered to buy all the shares it does not own in South Africa's MultiChoice Group for roughly $1.7 billion to strengthen its hand in a competitive international pay TV market. Canal Plus, the top shareholder in MultiChoice with a 31.67% stake according to LSEG data, said it would likely pay 105 rand in cash per share, a 40% premium to MultiChoice's closing share price on Wednesday. Shares in MultiChoice surged in Thursday trade but remained below the offer price. They were last up 24.83% at 93 rand. Canal Plus said its offer, worth 31.7 billion rand according to…

Feb

01

2024

By SAKHILE DUBE, BIRD STORY AGENCY

From the high-flying aviation industry to working the highways and byways of Johannesburg

BUSINESS

LOBISA Nhlapo spends her days contending with a mix of the traffic jams and open highways and byways of one of Africa's oldest developed cities: Johannesburg. The diversity of the storied surroundings is echoed in the multitude of stories told by her clients. That rich tapestry, along with regular improvements in her working conditions, is what has prevented her from going back to the aviation industry, where she worked before Covid. However, questions over her role as a woman driver in the male-dominated ride-share still rattle her. "Personally, I love meeting all kinds of people, which makes my work more…

Feb

01

2024

By KARIN STROHECKER and RACHEL SAVAGE

African Development Bank sells hybrid note in development finance first

BUSINESS

THE African Development Bank (AfDB) has sold its long-awaited hybrid capital note, the first financing of its kind for multilateral development banks, which are under increasing pressure to find ways to boost their lending. The G20 group of major economies has urged multilateral lenders to explore hybrid financing structures, to try to maximise balance sheets and increase funding to help developing economies with crises including climate change. The $750 million perpetual hybrid note has a 5.75% coupon, tighter than the 6.375% guidance. The deeply subordinated, debt-like equity instrument has a lower credit rating than the lender's AAA-rated bonds and can be redeemed…

Jan

31

2024

By The African Mirror

Black Friday, holiday sales spur demand at S.Africa’s Shoprite

BUSINESS

SHOPRITE, South Africa's biggest supermarket group, reported on Tuesday a nearly 14% jump in its half-year sales, supported by a record Black Friday and festive season as cash-strapped shoppers and upmarket consumers went after food deals. The retailer, with more than 2,900 stores across Africa, said group sales for the six-month period ended December 31 rose to 121.1 billion rand ($6.44 billion). Sales in the company's second quarter, which include November and the Christmas holiday period, rose 14.6%. Cash-strapped shoppers, hit by high interest rates and inflation, are spending less on discretionary items like clothes and shoes and more on food and essentials. "Sustained…

Jan

31

2024

By BRETT SILBERG

Investing in 2024: What to Expect

BUSINESS

AS we enter 2024, the investment landscape is expected to undergo significant changes. Here are some of the top trends that investors should keep an eye on: BRETT SILBERG Last Year’s Biggest Winners: In 2023, the stock market was the place to be for investors. The S&P 500 was up nearly 25%, and the Nasdaq had gained almost 43%. The biggest gainers were the FAANG stocks, which have now been dubbed “The Magnificent Seven” However, it’s important to note that past performance is not indicative of future results. Bonds Are Coming Back in 2024: With interest rates more likely to…

Jan

31

2024

By The African Mirror

Court tells Maroc Telecom to pay $636 mln to Inwi in antitrust case

BUSINESS

A Moroccan commercial court ordered market leader Maroc Telecom to pay compensation of 6.36 billion dirhams ($636 million) to its competitor Wana Corporate, better known by its brand name Inwi, for unfair competition practices. Shares of Maroc Telecom, the second-largest company on the Casablanca stock exchange by market capitalisation, fell 9.99% following the first instance verdict. Inwi, the third-largest telecom operator in the country, brought the case in 2021, accusing Maroc Telecom of abusing its dominant position in the market. No one from Maroc Telecom was immediately available to comment on the decision, including the chairman of its management board…