Remember when I said the JSE is bleeding companies?

In 1999, the JSE had 811 companies listed on the main board.

It now has has ~329 listings.

15 companies delisted from the main board in H1 2021 vs 13 during the same period in 2020.

6 IPOs in H1 2021 vs 4 in 2020. Image
There were 4 new Exchange-Traded Funds (ETFs) listed in H1 2021 vs 1 in H1 2020.

The JSE has also listed debt products on its Sustainability Segment. Here's an example of such a listing;

You can have a look at some of the South African companies that were taken private.

There is another big delisting coming due to Standard Bank buying out the minority shareholders of Liberty.

If Heineken can manage to get Remgro and the PIC on board, we might see a delisting of Distell.

Remgro and the PIC have a total economic interest of ~31,4% and ~31,7% respectively.

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More from @MaanoMadima

15 Aug
Former Pick n Pay CEO Richard Brasher stated that of the R200bn in sales growth expected in the South African grocery market to 2025, R140bn will come from the discount market where Pick n Pay is the least represented.

Shoprite Holdings has Usave.
Pick n Pay has Boxer. Image
Pick n' Pay is open to the idea of buying Massmart’s Cambridge Food chain (63 Cambridge and Rhino stores).

This will enable it to compete aggressively in the discount market with Boxer and Cambridge Food against Shoprite uSave?

Boxer opened 44 stores in 2020.
Pick n' Pay already operates in this market via the ownership of Boxer.

It owns 342 Boxer stores. Boxer is South Africa’s leading limited-range discount supermarket.

Cambridge Food caters for the low- to middle-income shoppers which PnP is targeting. Image
Read 10 tweets
15 Aug
Arnot OpCo signed a 10year (2m tonnes of coal a year) Coal Supply Agreement with Eskom for the supply of coal for the Arnot Power Station.

In terms of the agreement, Arnot OpCo will supply the full coal requirement for the life of Arnot Power Station.

Who is Arnot OpCo?
Arnot OpCo a mining company that is half-owned by 1 038 former Exxaro Resources employees who were retrenched in 2015 from the Arnot Mine in Middelburg.

The other half is owned by Wescoal which is listed on the JSE. Image
How did the employees come about owning the 50%?

Minister of Mineral Resources granted consent in terms of s11 of the MPRDA for the cession of the mining right for Exxaro's Arnot coal mine to a Consortium which will benefit its former employees who had been retrenched.
Read 9 tweets
12 Aug
Cashbuild had proposed to acquire 100% of the issued share capital of The Building Company (TBC) for R1,074,700,000.

In May, the Commission recommended that the proposed
transaction be prohibited.

Why was it prohibited? Who/What is TBC?
The Building Company (TBC) is the building material division of Pepkor, with over 180 stores and sites throughout Southern Africa.

Some of their well known brands are; Timbercity and BUCO Western Cape. Image
Why was Cashbuild interested in TBC?

TBC would've enabled Cashbuild to expand geographically and incremental access to additional segments of the market.
Read 15 tweets
11 Aug
Energy experts are estimating the cost to repair the damaged caused after the explosion at Eskom’s Medupi Unit 4 to be between R20bn and R40bn and will take up to two years to repair the damage.

How much has the Medupi project cost Eskom over the years?

🧵
Chief among the reasons for the high debt pile at Eskom is the poorly designed and planned construction of the Medupi & Kusile power stations( 2 of the biggest coal-fired power stations in the world).

There was a need for Madupi & Kusile, but the funding strategy was a disaster.
Where did the problems start?

It was back in 2008/2009 during the design stage towards the 2010 World Cup and the projected increases in demand for power.

Part of the pressure to construct the power stations was due to the impending Soccer World Cup.
Read 17 tweets
10 Aug
Why is Ubuntu-Botho (UBI) dubbed the most successful B-BBEE scheme?

Who is UBI? UBI is a black owned and controlled company (B-BBEE) which was established by Sanlam in 2003.

🧵
The deal saw the Ubuntu-Botho consortium take an initial 8% stake in Sanlam.

Shareholding was extended to include broad-based groups; trade union companies, religious organisations, women and youth groups,provincial companies from all the provinces, representing 700 shareholders
By 31 December 2013, the 8% equity stake had grown to 14% through a combination of share buybacks and the reclassification of an additional 66.5 million deferred shares to ordinary shares.

How/Why is it dubbed to be the most successful B-BBEE scheme?🤔
Read 25 tweets
10 Aug
CEO of Adapt IT, Sbu Shabalala, has taken the decision to terminate his employment with Adapt IT and resign as director of Adapt IT and its subsidiaries.

Reasons for the above?

He took leave in May following allegations he hired thugs to beat up his estranged wife's partner.
👀
👀
Read 4 tweets

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