| Wednesday 10 November 2021 Good morning Voornaam,
After announcing the deal back in August, Sirius Real Estate has completed its acquisition of Oberhausen Business Park for EUR39.8 million. The property offers a mix of office, warehouse, storage and other space. The initial yield is 5.9% at just 63% occupancy, so there's a substantial opportunity to improve the yield on this property. The acquisition was funded from the proceeds of the EUR400 million corporate bond issuance in June 2021.
Separately, Sirius raised gross proceeds of GBP137 million in an equity capital raise. The proceeds will be used to fund the acquisition of the BizSpace business for GBP245 million. This is a landmark deal for Sirius, as the company expands into the UK.
Hulisani Limited has lost over 70% of its value since listing in 2016 as a Special Purpose Acquisition Company (SPAC). Re atile Group, a Black-Owned investment holding company, will now take the energy group private at R4.30 per share. The company needs to go through the regulatory motions with the paperwork and approvals, but Mazi Capital controls 77% of the voting rights and has already given an irrevocable undertaking to vote in favour of the deal.
SA Corporate Real Estate Limited announced that the covenant for the loan-to-value ratio has been permanently increased from 45% to 50%. This gives the fund more breathing room to manage its balance sheet.
Stefanutti Stocks announced that it has received the initial purchase consideration for the disposal of a 49% interest in Al Tayer Stocks LLC. Stefanutti's share price is up more than 82% year-to-date and the market cap is around R96 million.
Alphamin produces 4% of the world's mined tin and has released results for the quarter ended September 2021. The highl ight was record quarterly EBITDA of USD53.7 million, up 58% from the prior quarter. The group is now in a net cash position rather than a net debt position and will give more guidance on its balance sheet strategy in the net quarter.
Life Healthcare released a trading statement for the year ended September, which confirmed strong growth in all regions. The normalised EBITDA margin in South Africa has improved to around 17%. HEPS is between 108 and 112 cents per share, which puts Life on a Price/Earnings multiple of nearly 22x.
Transaction Capital also released a trading statement for the year ended September, reflecting HEPS of between 146.2 and 148.1 cents. The Price/Earnings multiple is around 32x based on yesterday's closing price, which didn't take into account this announcement that was released after market close. It will be fascinating to see how the market reacts to this.
Today's feature articles include heartbreak in the PGM sector, Telkom's struggles at group level and Net1's ongoing losses. There's also a piece from DealMakers on ESG in dealmaking.
And in exciting news, those of you who have been curious about Magic M arkets Premium now have a chance to see what is on offer. As the founders of Magic Markets, Mohammed Nalla and I decided to unlock the Microsoft report for just 72-hours. I didn't want InceConnect readers to miss out on the opportunity to learn about Microsoft in detail, so make sure you read the report and listen to the show here before we put it back behind the paywall on Thursday night.
Have a good day!
The Finance Ghost |
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Local and Offshore Market News |
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