Company News in Brief
Old Mutual to launch new bank next yearInsurance group Old Mutual, which is gearing up to launch its new bank early next year, said on Wednesday that CFO Casper Troskie has agreed to remain in his position until April 2027. The group said in late 2023 he would reach the normal retirement age in April 2024, but had agreed to extend his contract until the end of April 2025. The group said on Wednesday it was pleased to announce the extension, which was in the interest of "continuity and to assist with the execution of various key strategy projects under way."
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Mondi to acquire Schumacher packaging
JSE-listed packaging and paper producer Mondi announced on Wednesday it has reached a €634-million (R12.2-billion) deal to acquire the Western European assets of Schumacher packaging. The deal includes two state-of-the-art mega box plants in Germany as well as additional plants and mills. Valued at about R143 billion on the JSE, Mondi employed 22 000 people as of its 2023 year, with 100 production sites across 30 countries, with its key operations located in Europe, North American and Africa. The group, which had been spun out of Anglo American in 2007, generates most of its revenue and profit in Europe, while it has also recently been pursuing scale, unsuccessfully bidding for UK rival DS Smith. It said on Wednesday the deal will provide integration benefits with its leading containerboard operations in Europe, as well as add complementary fibre-based products, used for e-commerce and fast-moving-consumer goods. CEO Andrew King said during an investor call on Wednesday that the group is "delighted" with the acquisition, which is expected to immediately contribute positively to earnings. It will also give the group a new footprint in Northwestern Europe, allowing the group to better serve customers.
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AYO Technology to sell Cyberantix
Iqbal Survé-linked IT group AYO Technology Solutions announced a deal on Tuesday to sell a stake in security firm Cyberantix to Mustek, SA's largest assembler of personal computers. YO owns a majority stake in Sizwe Africa IT, which will sell its 70% stake of Cyberantix. The latter primarily focuses on cybersecurity solutions for small to medium enterprises, mid-sized corporations, government and larger enterprises. Mustek holds a 40% stake in Sizwe Africa IT. "While [Cyberantix] has significant growth potential, this is expected over the medium to long term and will require further investment to become fully scalable," AYO said in a statement after the JSE closed on Tuesday. "The majority of Cyberantix' clients are not aligned to the Sizwe group's strategic priorities. As a result, management believes it would be more advantageous to partner with an already existing scaled cybersecurity company capable of executing the larger projects currently undertaken by the company." Mustek, valued at about R781 million on the JSE, was founded in 1987 and has branched out into cloud and cybersecurity solutions, networking equipment, and sustainable energy. The remaining 30% of Cyberantix is held by NIL Data Africa, which is not a related party to AYO.
FIN24
Transnet hit with court interdict
The High Court in Durban has granted an interim interdict against Transnet, putting a temporary halt on its R11 billion deal with Philippines-based International Container Terminal Services International (ICTSI) for the upgrade, expansion and operation of Durban's Container Terminal Two (DCT2). The interdict will remain in place until the hearing of "Part B" of the court challenge brought by APM Terminals, a subsidiary of Danish shipping giant Maersk and losing bidder in the tender process for the contract. In its review application, APM Terminals asked the court to set aside the award of the 25-year concession in its entirety. The argument hinges on how the solvency of ICTSI was determined, with APM Terminals contending that the Filipino ports company was given special treatment. In the ruling, which was handed down on Wednesday, the court interdicted Transnet from taking any steps to implement its decision to award the tender to ICTSI or from negotiating or concluding any contract relating to the tender with any party. Transnet and ICTSI were also ordered to pay APM Terminals' costs. ICTSI said it will appeal the ruling.
-FIN24