The deal whereby Prosus will swop its shares for Naspers shares is another attempt to close the discount to the Tencent holding, but will it work? I spoke with Mike Gresty from Anchor Capital on the subject. He has run the numbers and does expect a modest single digit uplift in price. But he’s concerned with the cross-holding complexity and reminds individual shareholders that swopping Naspers shares will results in a tax event which also needs to be considered.
Afrimat has the best acquisition record on the JSE with a number of high-quality deals over the past decade and it’s at it again. I spoke with CEO Andries van Heerden about the latest manganese mining rights they have acquired asking him not only what manganese is used for, but also the timelines and style of mining.
Cryptos are extremely volatile as we witnessed with last week’s 20% collapse in a single day. I asked Petri Redelinghuys – founder of Herenya Capital Advisors if this was time to panic or buy and he’s firmly in the buy camp. He does however caution that this needs to be done within stringent risk parameters keeping the trade size small to manage that risk.
Coronation* results were, as expected, really good. A bull market means serious profit for fund managers, I spoke with Nesan Nair from Sasfin about the valuation on the JSE-listed fund managers and whether they still offer value. We also touched on Reinet results and the deep discount to their assets with British American Tobacco being a significant part of that valuation.
*The writer holds shares in Coronation.
Also this week: Strong interims from Pepkor, The company has benefited from the down-shopping trend during the pandemic by offering customers good value at affordable prices: CEO Leon Lourens.