TUESDAY, 1.00PM:
A CUT in group tax liability after the acquisition of OK Bazaars lifted Shoprite Checkers’ headline earnings by 19% to 19,7c a share for the six months to December 31.
Shoprite is the largest supermarket group in the country, with a combined turnover of R17-billion. Managing director Whitey Basson said tax liability had been practically halved to R24-million, due to the group’s calculated tax losses.
OK Bazaars was purchased from South African Breweries (SAB) last November, for R1, and restructured, with 457 head office retrenchments, and 1000 voluntary retrenchments. OK Bazaars is expected to begin contributing to group profits by June.
BUSINESS BRIEFS
FOREIGNERS NET SELLERS OF SA BONDS
FOREIGNERS continued to be net sellers of R405,337-million worth of South African bonds on Monday after net sales of R147,533-million on Friday. The Bond Exchange of SA reported nominal cumulative volume at R17,344-billion on Monday from R19,172-billion on Friday. In the calendar year to last Friday foreigners bought a net R3,220-billion worth of SA gilts.
TWO PROVINCES SEEK BAIL-OUT
FINANCE Minister Trevor Manuel said on Monday that KwaZulu-Natal and the Eastern Cape have applied for portions of the additional R1,5-billion provided for conditional financial assistance. Manuel said some of the other provinces had misinterpreted the requirements, and some — unnamed — did not want the national treasury to examine the “inside detail” of their finances.
TELECOMS CENTRES FOR NEEDY
TELECENTRES, which will provide telephones, faxes, e-mail and the Internet to rural and underprivileged communities, will be established in their thousands over the next five years, according to Telecoms Minister Jay Naidoo. The first such centres will be opened in the next few months. SA is already the world’s 14th largest user of the Internet, said Naidoo, asking Parliament for R15-million to fund the project.
REVENUE TO MEET TARGET
THE South African Revenue Service has been very successful in collecting tax arrears and expects meet its revenue target of R162-billion for the next fiscal year, according to commissioner Trevor van Heerden, although economic decline will offset the gains. The tax base has been broadened by checking businesses against the tax register, while the corporate revenue office has been upgraded, and eliminated its backlogs. Seventeen new border posts have been completed, and work begins on others in April. Personal tax will contribute R65-billion to last year’s budget, value-added tax R40-billion, corporate tax R24-billion and excise duties R21-billion.
EDUCOR BUYS INTO CANADA
SOUTH African training and recruitment company Educor has acquired 50% of the Toronto-based International Business Schools for $27-million, after purchasing 5,4-million IBS shares at $5. The Canadian company runs 52 business and vocational schools in Canada, Mexico and China, teaching accounting, programming, electronics and tourism. It also runs a personnel agency, Canplace. Educor currently runs 120 schools in SA, with 300000 students.
ZIANA GOES PRIVATE
THE Zimbabwean government plans to “commercialise” the Ziana national news agency, according to telecoms minister Chen Chimutengwende. He said Ziana will register as a private company and form its own board within the next three months. Ziana has been a non-legal entity under the Zimbabwe mass media trust since 1980. On the subject of editorial independence, Chimutengwende said reporters should respect the people who provide their salaries. “You are not paid to publish stories that you feel strongly about …”
UGANDAN TELECOMS FOR SALE
UGANDA says one third of Uganda Telecommunications Ltd (UTL) will be reserved for a major investment or consortium when privatised. Parties pitching for 30% or more of UTL must include one up-and-running operator already providing at least 200 000 fixed lines. A consortium consisting of two telecoms operators, or one telecom and one cellular operator, can bid for up to 40%. Some 51% of UTL is up for sale, and tenders open on May 25. The company’s KPMG audited net assets are worth $37,8-million.
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