Five things making headlines in South Africa today

Brimstone exits Clover transaction, opening of Sasol colliery, Empowerdex faces suspension, Barloworld launches BEE offer, rand update.
Brimstone exits Clover transaction after entering into agreement with Milco and International Beer Breweries. Picture: Moneyweb.

Here’s what caught our attention on Friday:

1. Brimstone to exit Clover transaction

An agreement has been reached with Milco SA and International Beer Breweries to facilitate Brimstone’s exit from the Clover transaction.  The decision comes after Brimstone decided to review its participation in the transaction after facing a backlash from the Palestine solidarity organisation BDS South Africa due to the participation of an Israeli bottling company. Brimstone will however for a short period of time hold an interest in Milco, the entity that is an offeror in the Clover transaction and is in negotiations with a potential replacement B-BBEE shareholder.

Read: Brimstone to exit Clover deal on anti-Israel pressure

Read the full statement here.

2. Sasol’s colliery opening in MP

Sasol will be hosting the inauguration of Impumelelo Colliery in Mpumalanga on Friday. The mine will be opened by mines minister, Gwede Mantashe, alongside Sasol’s joint presidents and CEOs, Bongani Nqwababa and Stephen Cornell. The mine, according to news site Polity, employs about 1700 workers and follows the completion of phase 2 of Sasol’s R5.53 billion investment into the project.

3.  Agrizzi testimony sinks Empowerdex’s credit

The explosive details given by former Bosasa COO Angelo Agrizzi at the state capture inquiry has cost BEE agency verification agency, Empowerdex its accreditation status. According to Moneyweb Empowerdex’s accreditation was suspended by the South African National Accreditation System (Sanas) for its failure to comply with some of the accreditation requirements, without giving additional details due to confidentiality clauses. The suspension will come into effect on April 4, for three months.

Read: Agrizzi testimony sinks BEE agency Empowerdex’s accreditation

4. Barloworld’s new Khula Sizwe BEE offer

Distributor of global brands providing rental, logistics and fleet management solutions, Barloworld, announced a public offer to establish a black-owned and property company with assets worth R2.9 billion. According to Moneyweb, Barloworld will dispose of its properties at a 5% discount to Khula Sizwe for R2.7 billion, implying a 9% yield. The transaction will be 80% funded by external loans and 20% by equity.

Read: Barloworld launches Khula Sizwe public BEE offer

5. Rand update

This past week saw a relatively stable rand but it was quickly changed after poor mining production data released on Thursday and a stronger greenback. Risk-off sentiment also impacted the currency. This week also saw the IMF and World Bank projecting positive growth figures for the Sub-Saharan Africa region, while the US Federal Reserve and European Central Bank reinforced fears of sluggish global growth. The week ahead will see the release of SA’s inflation rate, which the MPC is determined to anchor at the 4.5% midpoint. On Friday, the rand was at R14.05 at 9:26. 

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