| Monday 13 December 2021 Good morning Voornaam,
AVI's confirmation that Mondelez has walked away from a deal was met by the share price falling nearly 6%. The cheeky part of this failed deal is that AVI's CFO has resigned to take up a senior role at Mondelez. His replacement has already been announced and has been sourced internally.
Dr. Christo Wiese is back to buying single stock futures with a vengeance, taking a position with a value of around R414 million in Shoprite. This is a leveraged play on Shoprite, which is a type of transaction that Wiese and his family office are well known for. No risk, no reward!
Gemfields has announced another set of record auction results, this time for rubies extracted from Mozambique where the company holds 75% in a mining operation. This has taken gemstone (emerald and ruby) auction revenues to a record high t his year of USD239.6 million vs. the previous record of USD200.6 million in 2019. Gemfields' share price is up more than 125% this year.
Mining company Merafe has seen its share price increase over 144% this year. The company has announced that the European benchmark ferrochrome price for the Q1'22 has been settled at 180 US cents per pound. This is identical to Q4'21 and 15.4% higher than Q3'21.
Wescoal released results for the six months to September. Revenue increased by nearly 28% and HEPS increased dramatically from 3.32 cents to 20.69 cents. Despite this, there's no dividend.
RMB Holdings released its interim results for the six months to September. The listed company holds the property investments that were part of the RMB stable, after the various other businesses were unbundled. Excluding the special dividend paid in May, net asset value increased 7% over the period.Oceana Group hired ENSafrica to investigate potential issues in the US subsidiary. The investigation is ongoing but the company has noted that there should be no material impact on results for the year to September. Audited results should be published in January 2022, with HEPS expected to decrease by between 5% and 12%.
Lighthouse is in negotiations to acquire a shopping mall in Spain. Furthermore, business interruption policies will pay out EUR950k, an amount that the company hasn't accrued for. The renewed policy will no longer cover business interruption from infectious disease, which Lighthouse says is now "broad market practice" - good news for insurers and concerning for everyone else.
Transcend Residential Property Fund successfully raised R156 million on Friday through an accelerated bookbuild at a 6.27% discount to the 30-day volume weighted average price (30D-VWAP) of the shares. With a ma rket cap below R650 million, this was significant for the group.
In other property snippets, Texton has agreed to sell its only retail asset in KZN for a price of R125 million. The price is R5 million below the property's book value and Texton will use the proceeds to reduce debt. Arrowhead shareholders should note that the circular and revised listing particulars for the merger with Fairvest (structured as a reverse takeover of Arrowhead) are now available.
Advanced Health announced that the additional consideration payable by Presmed Australia for the DEVOCLEA transaction (an acquisition of a 20% interest in an eye hospital) is just over R12 million.
Grindrod Shipping has invested $8.5 million in repurchasing 3.1% of shares outstanding for an average price of $14.38 (R226.10) per share. The share price closed at R234 on Friday.
Today's feature arti cles are on African Rainbow Capital's portfolio update, Ellies' disastrous day on Friday after a poor trading statement and Anglo American's updated production and capex guidance. Chris Gilmour also gives us an update on the global news that is moving markets.
Finally, the latest episode of Magic Markets saw us welcome Andries Retief to the show, the CEO of Central and Eastern Europe for DHL. We talked about supply chains (obviously), which have become incredibly topical in investing.
Good luck in the markets today!
The Finance Ghost
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