WEDNESDAY, 7.00PM
THE South African luxury department store chain Woolworths has announced plans to take over the giant Australian retail group Country Road.
Woolworths has made a R396 million offer to all ordinary shareholders of Country Road to buy them out at R6,85 a share.
Woolworths already has an Australian subsidiary, which owns 19,9% of Country Road. Executive chairman Syd Muller said the planned buyout is just the start of a strategy to diversify into international markets. “We view Country Road as being compatible with the existing business of Woolworths and the proposed acquisition represents a significant investment on our part,” he said.
BUSINESS BRIEFS
TELKOM MAY SUE
TELKOM, which lost its bid for exclusive rights over Internet communications this week, is seeking legal advice. Telkom accuses the government’s regulatory body, Satra, of ignoring and misunderstanding its submissions, and failing to understand the difference between being an infrastructure provider and a service provider.
Arthur Goldstuck explains the Satra ruling
MOBIL RETURNS
MOBIL oil, which was once a leader in the South African oil business before pulling out at the height of sanctions pressure in 1989, has announced plans for an aggressive comeback into the local industry, along with a black empowerment partner. For the time being, Mobil will stick to building up market share in the lubricants sector. Potential black empowerment partners include Naledi Investments and Afric Oil.
JAPANESE AID TO SWAZIS
JAPAN donated $458m to the Swaziland government on Wednesday, for the upgrading of several hospitals. The donation was made in the middle of a dispute between the country’s unions and the government over political reforms. Workers have been on strike since Monday, and repeated once again today that the strike will continue until the government concedes. The South African union federation Cosatu has pledged support, including blockades at the border.
DEBT ON THE RISE
DEBT judgements against South African companies reached their highest recorded figure in June at R139 million, reports the Central Statistical Services. Debt judgements in the first seven months of the year reached a cumulative R495 million, some 61% higher than last year.
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