Corporate news that made headlines in 2023

Earlier this week, hotels and gaming group Sun International announced a R7.3 billion deal to acquire Emperor’s Palace owner Peermont, capping off another year of headline-grabbing South African companies news.

This year’s corporate calendar was marked by big acquisition announcements, speculation and some important leadership changes as South African firms continue to negotiate difficult trading conditions. Here are some that caught our attention.

Dis-Chem founder steps down

After more than four years at Dis-Chem’s helm, Ivan Saltzman stepped down as chief executive of the South African retail pharmacy group. 

Saltzman’s resignation, which was announced in May, came in the wake of considerable controversy — triggered by an internal memo in which the now former chief executive placed a moratorium on hiring white workers. The dissension hit Dis-Chem well into 2023, with the firm citing “negative publicity” as a reason for its softer performance in its interim results.

But Saltzman’s decision to step down didn’t exactly quiet the controversy, given that he stayed on as an executive director — raising questions about his willingness to hand over the reins to his successor, Rui Morais.

Impala Platinum closes Royal Bafokeng deal

After a lengthy process, Impala Platinum’s takeover of Royal Bafokeng Platinum (RBPlat) was finally completed in July.

The platinum miner announced its intention to buy RBPlat way back in 2021, but was drawn into a battle with competitor Northam Platinum, which surprised markets when it acquired a 34.5% stake in RBPlat.

In November last year, Northam announced its proposed all-share offer in RBPlat but pulled its offer in April this year, citing a fall in metal prices. Northam later accepted Impala’s offer to buy out its RBPlat stake in a deal that consisted of a R9 billion cash offer and shares in Impala that roughly translate to 3.3% of the company.

Impala Platinum’s decision to buy RBPlat has had some recent ripple effects, as more than 2 000 miners this week staged an underground sit-in reportedly over certain misunderstandings relating to the deal.

Telkom rejects new buyer 

Although it never came to bear, news that Telkom was being courted for an acquisition by a consortium led by the company’s former chief executive, Sipho Maseko, riled markets.

Indeed, when Telkom confirmed the speculation, the company’s share price got a much-needed boost. And when it emerged that the deal was ultimately rejected, shareholders endured a 5% share price fall, as many considered Telkom’s decision a missed opportunity.

Later in the year, Telkom announced some less exciting — but not unimportant — news, namely that it was close to concluding an outright sale of its masts and towers business.

Transaction Capital bust-up sees CEO to the door

In September, SA Taxi owner Transaction Capital announced chief executive David Hurwitz’s departure at the end of 2023.

Hurwitz’s abrupt axing came in the wake of what had been a terrible year for the company, which was previously viewed as having a pretty resilient business model. 

In March, Transaction Capital issued a warning to shareholders of a forecast earnings slump and the need for an aggressive restructuring of SA Taxi. The news caused the company’s share price to tank by 40%. It also emerged that Hurwitz had sold R51 million worth of his own shares in the company last December, although both Transaction Capital and Hurwitz denied there was anything untoward about the sale.

Despite having recovered somewhat since the announcement of Hurwitz’s resignation, Transaction Capital’s share price remains at a nine-year low.

Naspers CEO booted

Also in September, Naspers and its internet arm Prosus announced that Bob van Dijk would no longer serve as the chief executive of the two companies.

According to the announcement, the decision was made through mutual agreement between the boards of Naspers and Prosus and Van Dijk, but his abrupt exit had some tongues wagging.

Summers-time at Pick n Pay

In perhaps one of the most interesting leadership changes of the year, in October Pick n Pay announced that chief executive Pieter Boone would step down and be replaced by Sean Summers, who had led the retail group from 1999 to 2006.

Summers’ return came shortly after the death of Pick n Pay founder Raymond Ackerman and as the grocery retailer reels amid historically poor performance.

The hope is that Summers can restore Pick n Pay to its former glory. In one of his first acts as chief executive, Summers had the displeasure of reporting that the retailer had made a half-year loss. Despite having a new, and presumably steady, hand at the wheel, Pick n Pay’s share price crashed and have shown little signs of recovery since.

Mary Vilakazi to lead FirstRand

In a more positive succession story, FirstRand announced that Mary Vilakazi will take over from Alan Pullinger as chief executive come 1 April 2024. 

Vilakazi’s promotion, announced in October, means she will become the first black woman chief executive of one of South Africa’s big five banks. She is also the first woman to head the 185-year-old company.

FirstRand also announced that Jacques Celliers will step down as chief executive of subsidiary FNB.