MONDAY, 12.00NOON:
THE Johannesburg Stock Exchange may follow the lead of Old Mutual and Sanlam insurers by demutualising, with listing a possibility, according to JSE president Russell Loubser.
Loubser said he had first suggested the move when he took over his position in January, but it had been regarded as a heresy. However, recent announcements by insurance giants Old Mutual and Sanlam that they are to follow the demutualisation route, had prompted him to reconsider whether the JSE should follow the same route.
He said that the listing of a stock exchange is not unprecedented internationally, with the Scandinavian countries as examples, and the Australian Stock Exchange the most recent to decide “in principle” on demutualisation.
Loubser said that although the plan has yet to be discussed by the JSE’s board, the process would be relativelty simple, most of the JSE’s assets having alreeady been distributed among its members when it deregulated in 1995. He added that he expects the JSE’s 51 member brokerages to view demutualising favourably.
BUSINESS BRIEFS
DOW OFFER R11,75 ON Monday we reported that Dow Chemical company had amended its offer to buy Sentrachem from R10,50 a share to R10,75 a share. This was incorrect. The revised offer is R11,75 a share.
WORKERS BASH UNION MUNICIPAL workers from the East Rand town of Springs, who were sacked in 1993 after taking part in an illegal strike, are suing their union for encouraging the strike. The SA Municipal Workers’ Union denies encouraging the strike.
TOP-END TAX BREAK? HIGH income earners may be in for some tax relief at the next Budget. According to David Clegg of Ernst & Young, the top bracket may be lifted from R100 000pa to R120 000pa, while the top tax rate may drop to 42% from 45%.