COMPANY NEWS IN BRIEF
Barloworld to sell Caterpillar in ZimbabweBarloworld has exited a Zimbabwean joint venture, and will now sell its Caterpillar earthmoving equipment directly to customers in the southern African country.
Barzem was established over 70 years ago as the Zimbabwean Caterpillar dealer, with ZSE-listed Zimplow as the majority owner.
Barloworld said it took the "strategic decision to remove itself" from the joint venture, meaning Barloworld Zimbabwe is now the sole distributor of Caterpillar equipment in the country.
All Barzem employees servicing Caterpillar customers were offered the opportunity to join Barloworld Zimbabwe, with more than 95% accepting the offer, said Andronicca Masemola, Barloworld Equipment’s Southern Africa CEO. "Barloworld has made significant investments in its wholly owned subsidiary, Barloworld Zimbabwe, in the form of new facilities and people.
"The board is following through on protecting shareholder value by acquiring Barloworld’s 49% shareholding in Barzem at a discount in line with the remedies provided in Barzem’s shareholder agreement," Zimplow board chair, Godfrey Tsikai Manhambara, said on Thursday.
Zimplow now has find a replacement supplier of heavy equipment. The company has set up a new structure for heavy equipment and earthmovers, transitioning from Barzem to a new entity, TPS, which has started securing affiliations with key suppliers to be able to continue to serve customers.-Fin24
LinkedIn cuts 700 jobs, shuts China app
LinkedIn, the social media platform for professional connections, has announced plans to cut more than 700 jobs and close its app for those seeking jobs in China.
In a letter to employees on Monday, LinkedIn Chief Executive Ryan Roslansky said the company would shed 716 jobs and scrap its job-hunting app in China in response to slowing revenue growth and changing customer behaviour.
“In an evolving market, we must continuously have the conviction to adapt our strategy in order to make our vision a reality,” Roslansky said.
Roslansky said the changes will include the creation of 250 new roles and integration of some teams, as well as reducing management roles and broadening responsibilities “to make decisions more quickly”.
“As we turn 20, we are entering a new decade for LinkedIn, one that will perhaps be the most consequential we’ve experienced to date,” he said.
“AI is just beginning to accelerate changes in the global economy and labour market, and LinkedIn is more essential than ever to help our members and customers navigate the changes to access economic opportunity.”-Fin24
Loadshedding adds to Redefine dividend drop
Shares in Redefine Properties plunged more than 6% on Monday, after it cut its first-half dividend by more than 14% and reported that load shedding has cost it 1.5% of its first-half earnings.
Redefine Properties said its rental portfolio occupation rate remained stable during the first six months of the financial year at 92.5%, a slight decline from the 93.3% in the prior year. Despite revenue climbing more than a third to R4.8 billion, distributable earnings per share fell just over 9%.
Redefine, valued at about R27 billion on the JSE, has a portfolio of offices, industrial properties and shopping malls valued at R94 billion. Its buildings include large office buildings in Sandton and shopping centres like Mall of the South and Maponya Mall in Gauteng.
The group also has retail and logistics assets in Poland. It expects to spend about R48 million on diesel during the 2023 financial year, half of it already spent during the first half.
In midday trade, Redefine's shares were down just over 6% to R358, having fallen almost 15% so far in 2023.
The increasing costs of keeping its assets powered during load shedding, together with rising interest rates, will cut the group's profit during the coming years, it said. Redefine is working to install solar panels at its shopping malls to reduce its reliance on Eskom.-Fin24
Steinhoff shareholders to get settlement cash
Retail shareholders of Steinhoff International who saw the value of their investments almost wiped out in the wake of its accounting scandal will start receiving settlement cash from today.
The Stichting Steinhoff Recovery Foundation (SRF), an independent body set up to assess claims, has indicated it will commence with the distribution of cash recoveries to valid individual and institutional market purchase claimants on 10 May, the retailer said in a statement on Monday. The foundation has previously indicated it has received 43 000 claims worth €3.2 billion, and it needed time to verify claims.
Claimants, however, are sharing a "pot" of about €1.4 billion to make up for the losses they incurred when Steinhoff's shares plummeted, and what they will receive will vary, as it also depends on when they bought their shares.
"We are extremely pleased to have reached the stage in this process where we are able to distribute payments to eligible claimants," SRF chairperson Marcel Windt said in a statement.
"The SRF has overseen a thorough process and I’d like to thank the many parties involved for their contributions along the way, as well as the claimants for their cooperation and patience.”-Fin24