| Tuesday 08 February 2022 Good morning Voornaam,
Things are getting weird at Oceana Group. After the company updated the market on the findings of the investigation into the accounting related to its US subsidiary Daybrook, it seemed like there was nothing major to worry about. The group explicitly noted that there was no fraud or misappropriation, or any management override of controls. Nevertheless, CFO Hajra Karrim has been suspended until further notice. This is on a "precautionary basis pending a further process" so we just don't know what is going on behind the scenes. The share price closed nearly 3% lower on the day.
As we highlighted last week in InceConnect, Bauba Resources has announced Raubex's firm intention to make a mandatory offer. The companies have issued a further update that they are cooperating and will release a combined circular in respect of the offer. This will have all the details needed to help Bauba shareholder decide whether to accept the offer.
The Standard Bank - Liberty deal has become unconditional, so the final steps in the process will now take place. Liberty shareholders will receive 0.5 shares in Standard Bank and a cash payment of R25.50. This will be wrapped up by the end of the month.
Jasco Electronics planned to raise up to R55 million in a rights offer. It could only manage around R48.3 million. This means that there was limited support for the capital raise beyond the partial underwriters, which included Community Investment Holdings (CIH). The proceeds will be applied in the reduction of debt, with around R8.3 million left over for general business requirements.
It was a rather slow day for news on the JSE, so this gives you ample time to read about Telkom's latest earnings update. I suspect the company would prefer that you glossed over it, as the market dished out swift retribution with a 7% sell-o ff on the day. Telkom is a difficult investment thesis and I discuss the latest quarter in one of today's feature articles.
The other article is on Sibanye-Stillwater's acquisition of Sandouville in France, which has now been completed. This is a big step for the battery metals strategy in Europe. Read all the details here.
Jaltech brings you their views on cryptocurrencies and why they beli eve that financial advisors are missing a trick around this asset class.
DealMakers has announced the shortlist for the Ince Individual DealMaker of the Year 2021. This is the most coveted award in the corporate finance industry - think of it as the Academy Awards for advisors! Read this article to see which dealmakers made the cut and which transaction they advised on. On a personal note, it was nice to see Ferdi Vorster from RMB make the list, as I've dealt with him before on transactions when I worked in this (small) industry. Good luck to all the finalists!
If you haven't listened to Episode 61 of Magic Markets yet, then you are missing out on great explanations of key concepts like the Fed, inflation and the yield curve. This narrative is dominating the market at the moment, especially when it comes to tech stocks. Follow this link to listen to the show and increase your knowledge.
Have a lovely Tuesday!
The Finance Ghost
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