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21 January 2020
Hello Voornaam,

Anglo American may get a bargain if it's successful with its bid for Sirius Minerals due to the tight spot the UK fertiliser exploration group finds itself in. However, Anglo's gains will come at the expense of Sirius shareholders, a great many of whom are small retail investors and won't realise their investment with Anglo's 5.5p per share offer. The alternative is the possible liquidation of the company, which would leave shareholders with nothing. Chairman Russell Scrimshaw was very apologetic as he urged shareholders to back the offer in yesterday's announcement.

Meanwhile, intu Properties plans to ask shareholders for more cash when it releases its annual results next month. The value of its shopping centres has diminished due to pressure on the UK retail sector, rentals are under pressure and its debt is unmanageable as a result.

More on those stories to follow, along with the Merafe joining the list of SA companies embarking on retrenchment programmes. Better news from Equites Property Fund, however, after it was appointed by Pepkor to build a big warehouse in a growing transport hub in KwaZulu-Natal.

In The Week Ahead, Chris Gilmour looks back at some of the news that have driven market action over the past week and what lies ahead in the days to come.

And we also take a closer look at Section 12J investments, which provide a means for SMEs to access equity investments and offer investors tax incentives. If you're interested in investing in Section 12J funds, click here.

Ingham Analytics' latest research note on Sasol explains why it's likely to muddle along for the short term as it gets its Lake Charles project in the US up and running. You can get access to the report by following this link.

Finally, if you're considering property crowdfunding, we've included five stats that may help you make up your mind. Click here to find out how you can participate in Uprise Africa's crowdfunding opportunity.

Have a good day.

Stephen Gunnion

Managing Editor, InceConnect


Todays Latest Headlines

Sirius shareholders urged to back Anglo bid
The fertiliser development company says given its current cash constraints it was left with no alternative but to recommend the offer.
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The A to Z of Section 12J investments
With over R8 billion invested into Section 12J investments, taxpayers with an income tax or capital gains tax liability should take notice of this investment before...
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intu confirms cash call to sort out debt
The shopping centre owner has been affected by a number of retailers entering company voluntary arrangements due to the weak retail environment
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Investing in Real Estate Crowdfunding, 5 stats that will make you invest
Crowdfunding for real estate is fast becoming one of the most popular applications of the crowdfunding revolution.
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Merafe negotiates cut jobs at loss-making smelter
The Rustenburg smelter has suffered material financial losses despite investment aimed at making the operation more competitive.
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The Week Ahead with Chris Gilmour 20 January 2020
The South African economic outlook remains extremely poor
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