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Cape Town - Overberg Asset Management analyst Kirk Swart picks the newsmakers of the week in his weekly five shares to watch.
1. Balwin Properties [JSE:BWN]
This week saw the listing of Balwin Properties [JSE:BWN], a large scale residential developer aiming to take advantage of the massive increase in residential demand.
The growth in residential demand stems from high density and growing metropolitan areas in Cape Town and Johannesburg. Balwin will develop 1-, 2-, and 3-bedroom sectional title residential units that are between 45m2 and 120m2. The prices range between R599 000 and R1.699m.
Balwin expects its market capitalisation to range between R4.2bn and R4.7bn after listing on Thursday, 15 October. It exceeded its estimate when the price of the first trade went through at R11, which gives it a market capitalisation of R5.2bn.
2. Mediclinic [JSE:MDC]
The South African hospital group Mediclinic [JSE:MDC] announced on Wednesday that it acquired the United Arab Emirates (UAE) hospital group, Al Noor. After the completion of the deal, which will see Al Noor being renamed Mediclinic International, Mediclinic will be the biggest private hospital group in the UAE.
With Mediclinic now being active in South Africa, the UAE, United Kingdom and Switzerland, they will manage and control 73 hospitals and 35 clinics around the world, offering a diversified exposure to various demographics.
Mediclinic, after the successful completion of this deal, will list on the London Stock Exchange (LSE).
3. Taste Holdings [JSE:TAS]
Taste Holdings [JSE:TAS], a management company which owns the rights to various fast food, dining and coffee chains on the African continent, recently announced a rights issue which will contribute to the roll-out of the American coffee franchise, Starbucks.
Taste wants to open between 12 and 15 Starbucks outlets within 24 months from the first store opening. The first store opening is scheduled for the first half of 2016.
Under its management, it currently has licences to the Domino's, Scooters and St Elmo's Pizza brands; the Maxi's diner; the Fish and Chips Company; and Zebro's.
Outside of foods, Taste also does business in luxury goods through its NWJ, Arthur Kaplan and World's Finest Watches brands.
4. Anchor Group Limited [JSE:ACG]
Following its successful listing, Anchor Group [JSE:ACG] is looking to grow by buying into other businesses. The Anchor Group announced this week that they will acquire 47.41% of Capricorn Fund Managers for a price of R348m. Anchor will pay R256m in cash and issue 7.7 million shares at R12 to cover the balance.
Capricorn Fund Managers is a hedge fund manager whic has been managing funds since 2003. Based in London, it invests in companies situated in emerging markets of which South Africa is one. Other emerging market countries include Russia, Indonesia and the Philippines.
5. Murray & Roberts [JSE:MUR]
The last thing that the struggling construction company would have wanted was the M1 disaster of Grayston Bridge in Johannesburg on Wednesday.
The tragedy saw the scaffolding of a temporary bridge collapse off Grayston Drive which has claimed the lives of two people and left over twenty people injured. Murray & Roberts [JSE:MUR], which was responsible for the scaffolding that collapsed, has since issued a statement saying that all the victims of the tragedy will be compensated and that the funerals expenses of the deceased will be covered by the company.
Murray and Robert’s share price reacted negatively to the news by declining by 7.3% on Wednesday. It closed 3.69% lower on Friday at R10.69.
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* Kirk Swart is an analyst at Overberg Asset Management, an Authorised Financial Services Provider (No 783) which specialises in the private management of local and global discretionary portfolios as well as pension products.
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