Company news in brief
SAA sale to Takatso consortium crashesThe controversial deal to sell 51% of SAA to the Takatso consortium for R51 finally crashed this week after the government raised the price for the airline.
Minister of public enterprises Pravin Gordhan made the announcement on Wednesday following a cabinet meeting that decided to pull the plug.
Originally, it had been agreed that 51% of the airline would change hands for R51 on the condition that, over time, Takatso would inject R3 billion of capital in the form of a shareholder loan.
Since then, circumstances have changed substantially, with Gordhan deciding last September to re-evaluate SAA's assets and business.
At a press conference, Gordhan said: "As a result of various factors, we have come to the point where those negotiations [with Takatso] will no longer continue. Our search for the right partner for SAA will not happen through this process."
Gordhan said that while SAA's assets were valued at R2.4 billion and the business operations were at zero in 2021, SAA had since become a viable business.
The new valuation came out with a property valuation of R5.5 billion and an equity value of R1 billion. - Reuters
Exxaro lifts amid special dividend
While lower coal prices helped prompt a profit fall for Exxaro Resources in 2023, the coal miner said it had seen a healthier earnings contribution from its renewable energy business.
Revenue fell 17% to R38.7 billion in the year to end-December and headline earnings 22% to R11.3 billion, the Eskom supplier reported yesterday. It grappled with lower export prices relative to a buoyant 2022.
However, higher iron ore prices provided support, and while the group cut its final dividend by 11% to R10.10, it cited a strong cash position in its decision to pay a special dividend of R5.72 per share.
The group's share price lifted 4% in late-morning trade yesterday, though it is still down more than 2% for the past year. – Fin24