WEDNESDAY, 4.30PM:
MULTICHOICE Industrial Holdings (MIHH) on Wednesday announced it is to hive off its Internet business, M-Web Holdings, as a separate company, which will then be listed on the Johannesburg Stock Exchange.
The company said M-Web will be capitalised to the tune of R550-million — R350-million through a renounceable rights offer to MIHH ordinary shareholders, with the balance funded from MIHH resources.
Following the rights offer, the shares of M-Web Holdings will be unbundled as a dividend in specie to all MIHH shareholders on a one-for-one basis. Thereafter these MIH/M-Web shares will be listed on the JSE as linked units with MIHH on the basis of one M-Web share for one MIHH share. The shares will be delinked at a later date.
M-Web was formed in January 1997 following MIHH’s acquisition of World Net Africa and CompuServe in December 1996 as an extension of its multimedia and entertainment interests. Since then M-Web has acquired service provider PiX Internet, as well as the controlling interest in Electronic Mail & Guardian. The interests transfer to M-Web includes Computicket.
“In view of the phenomenal growth of the corporate and residential sector of the Internet, M-Web is making big investments in the expansion of its network and technical infrastructure, as well as in people,” said M-Web CEO Antonie Roux. “We aim to be the leading South African provider of access to and information via the Internet.”
BUSINESS BRIEFS
OIL GROUPS WON’T SUBSIDISE MOSSGAS
A LETTER to Ken Andrew, the parliamentary public accounts committee chairman, has revealed that the oil industry is refusing to pay any money towards resolving a multi-million rand pricing impasse with Mossgas, after an agreement whereby they purchased oil from Mossgas at a discount to the in-bond landed cost lapsed last year.
ZIM FUEL INDUSTRY CRISIS
THE National Oil Company of Zimbabwe, the country’s official fuel importer, is being pushed into crisis by government delays in approving new prices. Fuel shortages have hit Harare and Bulawayo because of a pay dispute between National Oil and the tranporters who supply retail oil companies.
SALDANHA STEEL ON SCHEDULE
AFTER rioting and arson attacks by workers threw the Saldanha Steel project into chaos last week, a two-week delay is expected, but Iscor still expects half the plant to be commissioned on schedule in April. The plant is expected to reach full production in 2000.
N CAPE MAY RUN ALEXKOR
ALEXKOR, the struggling state mining company, is to be split into on-shore, shelf, and deep-sea mining operations, and non-core agricultural activities. Now various projects like running houses, hospitals and schools, and ostrich and dairy farms may be taken over by the Northern Cape goverment, so as to reduce the possible social impact of Alexkor’s withdrawal from Namaqualand, while maintaining the company’s investment potential.
SBC STUCK IN MTN
US telecoms company South Western Bell (SBC) is struggling to sell its stake in local cellular network MTN because it cannot find a black empowerment partner. SBC at present has stakes in Telkom, MTN and Vodacom. SBC undertook to sell its stake in MTN when concluding the Telkom deal last March, but the sale has been delayed by the search for a black empowerment partner.
SUN STILL SHINING
SUN International South Africa (Sisa) has reported an 8% increase in interim earnings to 28,4c a share for the six months ending last December. The increase was helped by an improvement in the performance of Sun City, now close to breaking even. Sun City is to be restructured to reduce a dependence on day visitors, ahead of the launch of Gauteng gambling operations. Sisa has declared an interim dividend of 16,5%.
NUM WANTS LAY-OFFS SUSPENDED
THE National Union of Mineworkers has called on the Chamber of Mines, on threat of industrial action, to agree to a moratorium of at least two weeks on retrenchments in the gold mining industry. The union is currently discussing the lay-offs in the National Economic, Development and Labour Council, where its proposals have been called “reasonable” by most parties, but the Chamber of Mines is unlikely to deliver the requested “gesture of goodwill” moratorium.
FARMLAND TO BE PROTECTED
THE Department of Agriculture has made it clear that legislation to protect agricultural land from uncontrolled development will have to be in place before the Subdivision of Agricultural Land Act can be repealed. The National Party and the South African Agricultural Union have expressed concerns that agricultural land is under threat, and say they will not oppose the repeal as long as the Act is replaced first. The Act currently dictates the minimum size of farms.
ZAMBIAN MINE SELL-OFF NIGH
ZAMBIAN President Frederick Chiluba has announced a huge step in his country’s privatisation programme. At the end of February, the country’s major foreign currency earner, its copper mines, will be handed over to foreign private firms. Negotiations for the privatisation of the giant Zambia Consolidated Copper Mines (ZCCM), the country’s biggest employer, are almost over.
5% GROWTH BY 2000
FINANCE Minister Trevor Manuel said on Tuesday that he anticipates South Africa to achieve an economic growth of 5% by the year 2000. Expected economic growth for this year is around 3%, although some economists place it closer to the 2% mark.
BOND DEALER SHORT-LIST
THE government is compiling a short-list of potential primary dealers in government bonds, a banking source said on Tuesday. Although not finalised, the list includes ABN-Amro, JP Morgan, Merrill Lynch, Socit Generale, First National Bank, Investec, Nedbank, Rand Merchant Bank and Standard Corporate & Merchant Bank.
NOGXINA NAMED D-G
FORMER deputy director-general in the Public Service and Administration Department Sandile Nogxina has been appointed director-general of Mineral Affairs and Energy Department. He replaces Dick Bakker, who will move to head up the department’s mining inspectorate.