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Five things making headlines in South Africa today

Tekkie Town shareholders file legal claim against Steinhoff, SA ready to issue Eurobonds, Transaction Capital and Capital Appreciation results out, and retail sales figures expected.

Here’s what caught our attention on Wednesday:

1. Tekkie Town’s R1 billion bonus from Steinhoff

Tekkie Town executives are seeking clarification on the terms of a conditional ‘earn out’ bonus that should be paid by Steinhoff to Tekkie Town by 2020, and could amount to R1 billion. This comes after Steinhoff acquired the shoe retailer in 2016 for R3.2 billion. According to Moneyweb, Steinhoff agreed to pay Tekkie Town shareholders a bonus based on the performance of Tekkie Town while under Steinhoff. Tekkie Town shareholders have filed a legal claim against Steinhoff.

2. South Africa to issue first Eurobonds

For the first time, under the leadership of President Cyril Ramaphosa, South Africa will issue Eurobonds. The aim is to improve investor sentiment in the country, while the president takes measures tackle corruption and mismanagement. Bloomberg reported that South Africa is marketing dollar securities maturing in 2030 and 2048, with initial price talk of about 6% and 6.37%, respectively.

Read: SA’s Eurobond sale is a test of confidence in Ramaphosa

3. Transaction Capital results

Transaction Capital’s results for the half-year ending March 31 2018, showed a 17% increase in core headline earnings per share to 50.8 cents from 43.3 cents per share in 2017. The interim dividend increased by 40% and has been declared at 21 cents per share. Core headline earnings are up 40% to R310 million.

4. Capital Appreciation results

Capital Appreciation reported a revenue of R571. 3 million for the financial year ending March 31 2018. Headline earnings are up 265% to R143.4 million, headline earnings per share are up 204% to 9.53 cents per share and a total dividend of 4 cents has been declared for the year.

5. March retail sales

Retail sales for March rise 4.8% year-on-year. In February, retail sales increased by a revised 4.2% year-on-year. On a month-on-month basis sales rose 4.1%. 

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I would like to add a sixth point: The withdrawal of the South African ambassador from Israel. Just show the tremendous stupidity of this government. If they withdraw from Israel by implication they must also withdraw from the USA…right?
I think it is a matter of time before Trump will give them the boot.

End of comments.


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