COMPANY NEWS IN BRIEF
Sasol appeals against pollution rulingSasol, the second biggest emitter of greenhouse gases in SA, has appealed to the Minister of Forestry, Fisheries and the Environment, Barbara Creecy, to change the methodology used to measure the company's emissions after a similar request was refused by the National Air Quality Office (NAQO) in her department last month.
The company proposes that it turn down its boilers at Secunda to reduce the overall amount of air emitted rather than reduce the concentration of sulphur dioxide (SO2) in its emissions.
Sasol's operations at Secunda, where it produces synthetic fuels and chemicals, emit SO2, which is harmful to human health. Secunda is frequently described as the single biggest emission point on the planet, a statement the company has not denied. Last year, a court ruled that the harmful air in Mpumalanga, where Secunda is situated, was an infringement of the human rights of residents.
When measured using the standard method - the concentration of SO2 per cubic metre of air emitted – Sasol does not comply with minimum emission standards (MES).
The new MES will come into effect on 1 April 2025. Sasol has requested that it be measured on the alternative the Air Quality Act allows for, which is on the overall load emitted. It also promises a longer-term plan to reduce emissions, it says.-Fin24
Aspen grows Latin American assets
South Africa's biggest pharmaceutical group, Aspen Pharmacare, is deepening its footprint in Latin America with the US$280 million (R5 billion) acquisition of a portfolio of specialist drugs, including Viagra.
Among other key products in the portfolio are cholesterol-lowering medicine Lipitor, anti-epileptic drug Lyrica, antidepressant Zoloft, hypertension medicine Norvasc and Celebrex, an anti-inflammatory medication. These are being acquired from Nasdaq-listed drug maker Viatris, with Aspen paying $150 million in cash for the portfolio and settling the balance through an extension of supply terms to Viatris.
While in the Viatris stable, the products generated $92 million in sales in the year to end-December, said Aspen in a statement.
"Due to the way the products have been integrated into Viatris' business, it is not possible to accurately determine or estimate the profit attributable to the products within Viatris," the group said.
However, Aspen estimates the gross margin from these drugs to be higher than the 60% gross profit margin of its own pharmaceuticals division during the six months ended December 2022.-Fin24
Prosus agrees to sell part of PayU
Prosus NV plans to sell part of its emerging-markets financial technology company PayU to Israel’s Rapyd for US$610 million (R10.9 billion).
The deal will exclude the company’s biggest payments market in India, as well as its units in Turkey and Indonesia, Prosus said in a statement on Tuesday.
PayU’s so-called Global Payments Organisation, which forms part of the transaction, operates in more than 30 countries across Asia, Latin America, Europe and Africa, and contributes to about a third of PayU’s overall revenue.
"PayU’s GPO business has grown considerably in recent years, with payment volumes growing more than 400% in the past five years alone," Prosus CEO Bob van Dijk said. "We are now fully focused on the huge fintech opportunity in India, where PayU is the leading payments service provider and is rapidly expanding its credit offering."
Prosus, through its controlling shareholder Naspers, made an early bet on China’s Tencent Holdings, and is seeking ways to unlock value after that holding ballooned in worth. Prosus and Naspers recently received approval from the South African authorities to unwind a complex cross-holding structure between the firms.-Fin24
RBPlat cease trading on the JSE
Shares of Royal Bafokeng Platinum was suspended from trading on the JSE on Wednesday ahead of its delisting in mid-September, as Impala Platinum wraps up its takeover of the mining company.
Last week, Implats announced it had finally completed its long-won acquisition of RBPlat, having closed its offer to shareholders and garnered more than 98% of the company's share capital.
In line with the provisions of the Companies Act, Implats moved to compulsorily acquire all of the RBPlat shares it did not already hold, and it now expects this will be finalised on 14 September. It also applied for the termination of the RBPlat listing on the JSE, which is anticipated to take place on 18 September.
The RBPlat share was trading at R128 on Tuesday and is essentially pegged to Impala Platinum's offer price extended to all shareholders.
RBPlat on Tuesday reported a dive in earnings due to a decline in metal prices coupled with lower production volumes and higher cost of sales.
Headline earnings slumped almost 115% to a headline loss of about R330 million, while revenue decreased by 29% to R5.8 billion. The company's net cash position fell 7.1% to R4.5 billion.-Fin24
SA Govt probing Shein
The government remains concerned about allegations Chinese fast-fashion platform Shein is exploiting customs duty loopholes to bring goods into the country on an industrial scale using tariff structures intended for small amounts of goods.
Trade, Industry and Competition (dtic) Minister Ebrahim Patel told News24 on Monday these types of practices created an "unfair playing field" and could result in "massive job losses".
This comes after the department confirmed in March that an investigation into Shein was underway as parts of business and labour in SA sounded the alarm. There were concerns that Shein, which was established in 2008, could use tax loopholes to undercut local retailers and manufacturers.
Central to the concerns raised at the time by Southern African Clothing and Textile Workers Union (Sactwu) and the National Clothing Retail Federation (NCRF) were that local outfits wouldn't be able to contend with such cheap imports.
There were also allegations that Shein uses "sweatshop labour" to produce extremely cheap products and that the Chinese retailer could be undermining both the manufacturing and retail aspects of the Retail-Clothing, Textile, Footwear, Leather Master Plan (R-CTFL). This was an agreement between the government and local clothing sector in 2019 to try to encourage more local content and jobs.-Fin24