Financial Indicators (NOW)

The gold price continues to step up in tandem with the oil price as global uncertainty picks up. It seems what's bad for the world is good for South Africa, including the demise of the dollar. Ameerican kerfuffling in Iran is also propelling that nation (and Russia) to make oil transactions in Euro's rather than the dollar. China has also decided to push more of its investments into the Euro. And why not?

Gold 832.65 Up 0.23%
Platinum 1457.00 Up 1.29%
Brent Crude Oil 94.65 Stable 0.00%
Rand - US Dollar 6.4880 Down 0.18%

‘Powerful cocktail’ puts gold in sight of $900

Mvela to acquire Johncom stake

Tokyo Sexwale’s Mvelaphanda Group is to acquire between 25.1 percent and 30percent of Opco, a company being formed to hold the media and entertainment assets of Johnnic Communications.

by Xolile Bhengu, in The Times.co.za

The stake is being acquired from client portfolios, which are currently managed or advised by fund managers Allan Gray, for just over R1.4-billion.

The announcement saw Johncom’s share price jump more than 5 percent to R109.50, while Mvela’s weakened to 50c to R53.

Yolanda Xuba, Mvela chief executive said the deal will see it obtain part ownership of Sunday Times, Sowetan, Sunday World, The Herald, magazine publications as well las retail divisions of Johncom that include Exclusive Books and Nu Metro.

She said the deal was a culmination of two years of talks between Mvela and the media group. The Johncom board has asked that the deal only be done after the actual unbundling.
Johncom’s unbundling is estimated to be worth R7-billion. Mvela said it already had R1-billion in equity and was speaking to several banks for the remainder of funding.

For the rest of this article, go here.

ALERT: Mvela already taken control at Johncom?

There were strong rumours in the market late yesterday [Thursday] that Tokyo Sexwale’s Mvelaphanda group has quietly bought control of Johncom, owners of the Sunday Times, Sowetan and half of Business Day and the Financial Mail. An announcement may be made today.
Business Day understands that Mvela bought the stake in Johncom held by asset manager Allan Gray.

From Business Day and Sowetan Online:
By Peter Bruce

The transaction may have taken place late last week, just after Mvela published a cautionary notice. There is no indication how much was paid for the stake, but Allan Gray held about 30% of Johncom. Abdul David of Allan Gray described the reports as “speculation”.

Citibank recently valued that portion of Johncom which would remain, should management go ahead with plans to dispose of the Johncom stake in M-Net and hive off the stake in Caxton, at R6bn. That would imply Mvela paid about R2bn for a “forward stake” in what will be known as Opco or Avusa.

The new speculation arises out of a surprise announcement at the weekend by Johncom that it had ended talks with potential black investor groups. Johncom is still not viewed as a fully black-empowered company, and the need to become one had been driving the talks.

But Johncom withdrew a cautionary notice last week, just as Mvela was issuing one of its own.
Johncom is trying to sell its 38% stake in M-Net back to Naspers and to leave its 38% holding in Caxton, one of the country’s largest printers, in a listed shell of its own.

Terry Moolman, Caxton’s founder and owner, has taken the M-Net deal to the competition authorities.

It was accepted originally that front-running empowerment groups in the race to control Johncom were Mvela and Cyril Ramaphosa’s Shanduka group, but it may now be the case that Sexwale has done the deal on his own. It also seems clear that, by dealing directly with Allan Gray, Mvela will have avoided the many complications that could have arisen in dealing directly with Johncom management.
For the rest of this article, go here.

NVDL: And I had speculated earlier that Telkom would buy a stake, well, the new Telkom, Telkom Media. I guess they are still shedding their fixed line operations, and so in a sense it was a question of readiness and eligibility.

A Media Marriage Made In Heaven

Is Telkom unbunbling itself in a move to ultimately transform itself in a Media company. Is a giant rival on the cards to rival the Naspers Multichoice Juggernaut? Maybe!

Imagine this: a streamlined shell of Telkom with pockets bulging with R100 billion in cash. That's how much they would get having shed their fixed line and 50% stake in Vodacom.

And then?

Well, perhaps Johncom - who are already streamlining their own portfolio - and Caxtons and why not throw in eTV (with their Warner Alliance) for a 'deal of the century'. And voila: TJC Communications (Telkom, Johnnic + Caxton).

Stranger things have happened, and the ball is in play.

Make Your Fortune

I had lunch today with my father, and was given a knife (one of those knives for mail), and sent to fetch a package from his office. In the package was a thick blue binder - a history of the van der Leek's going back as far as 1730.

My great Grandfather, Kees van der Leek, had a huge faactory in the Netherlands, where a lot of the family worked as carpenters etc. From there he designed and built not only the exteriors of high quality townhouses along the canals (in Haarlem), but also the interiors. So a lot of carpentry was going on. He then went to Russia (this is before there were cars) to locate cheap timber. After that he went by ship to America and disappeared, but before he did, he went on a womanising spree. He lost everything and basically disappeared off the map, although his factories kept the family he'd left behind well heeled, and led to his children and grandchildren futhering themselves successfully in the building trade.

Over lunch my father described how he had avoided bankruptcy three times. I said that I think it's in the van der Leek's blood to do business for themselves. We're probably too intelligent, stubborn and arrogant to work for other people.

I said that I think starting one's own business in South Africa is very tough, and my father said, 'No, it isn't.' He described how many cars (as a symptom of growth and industry) now queue up to get into the city of Bloemfontein. From our house right up the highway to Spitskop - in the mornings. Something unheard of just 10 years ago.

I mentioned a business idea I did have (a direct marketing channel/medium built over a home delivery service) but he didn't seem to think it would work.

To make money AVOID THE ARTS, he also said.

Meanwhile at work today I've experienced what it feels like to be a Shitscreen. You've just got to keep calm and come up with the information you properly distributed. It's easy to forget that you did something when the evidence seems to point to the contrary.

Last night I didn't go to a Cycling Seminar (Nick Bester was the speaker), nor to the Sendingfietstoer Reunie. Just needed some Time With Nick.

Went to bed early and woke up still tired. Wow, I think I've been burning myself out. Need to get all the sleep I need this weekend.

Meanwhile, today I joined the gym. Time to swap the Michelin Man, for the Ironman.