What? The rand will go up?

Dr Chris Harmse

The Constitutional Court verdict on Nkandla, as well as domestic and global economic prospects, will favour the movement in the rand in weeks to come.

The US jobs report that was released yesterday, the financial market stability in Japan and Europe that has receded, and domestic economic data supports the sentiment of a stronger rand.

The gradual approach of “possible” rate increases in the US was supported by the latest employment data, showing that although more jobs were created (215 000 in March), the unemployment rate increased from 4.9% in February to 5.0%.

This will likely lead to the Fed abstaining from increasing rates before the second half of the year, causing emerging market currencies (also the rand) to appreciate further.

Domestically, the South African Revenue Service (Sars) collected R1.0699 trillion in taxes during the 2015/16 year.

This is R154.07 million above target. It is the first time that Sars collected more than R1 trillion and is remarkable, given the lack of economic growth in South Africa.

This increase in tax revenue may lead to a lower central government debt to GDP than budgeted for (3.6%).

In this regard, foreign grading agencies and investor sentiment towards the country will have a positive effect on the rand ex- ealmakers: Business takes a look at some of the more significant local deals:

Glencore has entered into an agreement with Canada Pension Plan Investment Board to sell its 40% stake in Glencore Agricultural Products for $2.5 billion. The part-sale is seen as the next stage in the development of Glencore Agri.

Wilderness has agreed to buy from Monitor International Holdings a 51% stake in Governor’s Camp Group. The acquisition tag of $6.2 million gives Wilderness an opportunity to expand into East Africa.

Sun International has abandoned its R9.5-billion takeover plan of Peermont, announced in March 2015, due to regulatory objections. Adcock Ingram has disposed of its Indian pharmaceutical marketing and selling business to Samara Capital Partners Fund II, an Indian-focused private equity firm. The Enterprise Value of the transaction has been put at R336 million.

Balwin Properties has finalised a deal with Portimix for the acquisition of development rights in the Kyalami/Waterfall node situated in Gauteng. The consideration payable by Balwin is R1.5 billion.

Grand Parade Investments has, as part of an agreement signed in 2014, sold a further 25% stake in GPI slots to Sun International for R274 million. The proportionate share of shareholder loans is R53.7 million.

Steinhoff International, through its subsidiary Conforama, has made an undisclosed offer to buy a significant part of the bedding business of France’s Cauval.

The offer is one of several for the loss-making Cauval, which was placed in receivership in Feb- ruary.

International Hotel Group has completed the acquisition of two UK Holiday Inn Express hotels located in Redditch and Southampton for a purchase price of £26 million.

Anglo American has entered into a sale agreement with a consortium led by Australian Taurus Fund Management to sell its 70% stake in the Foxleigh metallurgical coal mine in Queensland, Australia.

Tsogo Sun has revived a plan to acquire stakes in Sunwest International and Worcester Casino. The company will acquire a 20% interest in Sunwest International and Worcester Casino for R1.3 billion.

In terms of the new deal, Tsogo Sun will acquire a 10% voting and economic interest in Sunwest and Worcester from Sun International for R675 million. It will also acquire a 10% stake in both from Grand Parade Investments for R675 million.

Mas Real Estate has concluded an agreement to acquire a port- folio of 20 properties throughout northern and central Germany from various subsidiaries of Edeka MIHA AG. The purchase price of the acquisition is €56.01 million.

Net1 UEPS Technologies has announced the acquisition of a 60% stake in Masterpayment AG, a specialist payment services processor based in Germany. The value of the transaction was undisclosed.

Imbalie Beauty has entered into an agreement to acquire the property at 23 Saddle Drive, Woodmead Office Park in Gauteng for R13.2 million.

Unlisted companies

Dimension Data has acquired privately owned Ceryx, a Toronto headquarter provider that offers a suite of services across the Microsoft Messaging and Collaboration Suite.

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