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Cape Town - A roundup of Thursday's top economic and finance reads on Fin24.
NUM threatens to end support of ANC over govt’s renewable energy deal
The National Union of Mineworkers (NUM) has threatened to end its support for the African National Congress (ANC) if government continues with its renewable energy programme, saying clean power will destroy jobs and create ghost towns in coal mining areas.
“Workers of this country will not continue to vote and support an organisation which is taking away jobs from the poor. We cannot perpetually campaign and vote for the so-called New Dawn as narrated by Cyril Ramaphosa,” the NUM said in a statement on Wednesday.
Fin24 reported on Wednesday that Energy Minister Jeff Radebe signed contracts to the value of R56bn with 27 independent power producers (IPPs).
Murray & Roberts sets R9.8bn price tag
Murray & Roberts sees a fair value for the engineering and construction company at as much as R9.8bn, setting a price tag for Germany’s Helmig family after rejecting an offer last week.
After reviewing an independent report by BDO Corporate Finance, Murray & Roberts values the company at between R20 and R22 a share, it said in a statement on Wednesday. That compares with a R15 offer made by Aton, the Helmig family’s investment group, which already owns a 33% stake.
For its part, Aton reiterated the R15 per share bid, adding that two top-ten shareholders had already agreed to sell out at that level. The offer “will provide Murray & Roberts shareholders with the opportunity to realise significant and attractive value,” it said in an emailed statement.
Zim wants mining companies to list majority of shares on the local exchange
Zimbabwe wants mining companies operating in the country to list the majority of their shares on the local exchange, stirring uncertainty among investors as the nation with the world’s biggest platinum reserves after South Africa tries to bring in money to fix the economy.
“No mining right or title shall be granted or issued to a public company unless the majority of its shares are listed on a securities exchange in Zimbabwe,” the government said in the Mines and Minerals Bill before parliament, received by email on Thursday.
Companies that are seeking mining rights and already listed on a foreign bourse must notify the mines minister, and 85% of the funds from the local listing must be used exclusively to develop the local right, according to the bill.
Steinhoff scraps vote for executive bonuses
Steinhoff has scrapped a proposal to vote on one-off payments of between €100 000 (R1.46m) and €200 000 (R2.92m) to three of its senior board members at its upcoming Annual General Meeting.
In a shareholder announcement on Thursday morning, the global retailer said that the part of the resolution relating to the proposed additional one-off payments for additional work rendered be deleted.
"The supervisory board members who were to receive these additional payments have requested that such matters are not pursued at the coming AGM. They believe that these matters should be left to a newly constituted supervisory board which will be appointed at the AGM, and specifically its remuneration committee, to resolve at an appropriate time in the future," it said.
What the super-rich love about SA
South Africa has over twice as many dollar millionaires as any other African country, according to the latest South Africa 2018 Wealth Report released by AfrAsia Bank and New World Wealth on Thursday.
The report defines high-net-worth individuals, or HNWIs, as people with wealth of $1m (about R12m) or more.
The number of HNWIs in South Africa increased by 8% to 43 600 by the end of 2017, according to the report. Furthermore, the number of dollar millionaires in the country is expected to grow by 28% to 56 000 over the next 10 years to the end of 2027.
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