The Nation Newspaper

Tag: South African

  • South African with cocaine in brassiere arrested at Lagos airport

    South African with cocaine in brassiere arrested at Lagos airport

    An attempt by a South African woman to smuggle 1.210kg cocaine from Nigeria to her home country was yesterday foiled by anti-narcotics officials.

    The 34 year-old apprentice chef was arrested at the Murtala Muhammed International Airport (MMIA), Ikeja, in the process of boarding a Johannesburg-bound plane.

    She allegedly concealed the substance packed in two parcels in her brassiere.

    The drug was detected by a female operative of the National Drug Law Enforcement Agency (NDLEA) during passengers’ screening.

    NDLEA commander at the airport, Ahmadu Garba gave the suspect’s name as Lekganyane Lerato.

    Garba said “The suspect was intercepted during routine screening of passengers on South African airline. The drug was neatly concealed but certainly not good enough to escape our notice. She is currently under investigation and will be charged to court very soon.”

    The suspect said that she was lured into drug trafficking by friends.

    She said she “never imagined that the drug would be detected because it was carefully concealed inside my brassiere. A female officer requested to feel my boobs that was how the cocaine was detected. My travel expenses were handled by the sponsor who promised to pay me $3,000 when I get to Johannesburg but all my dreams have been dashed following my arrest” Lerato lamented.

    NDLEA Chairman and Chief Executive, Col. Muhammad Mustapha Abdallah (rtd.) expressed optimism that the chances of being caught with drugs are getting higher in the country.

    “Daily arrest of drug traffickers has validated our superiority. Drug trafficking organisations may try their best but they will end up in prison custody.”

     

     

  • Nigerian, South African regulators approve Dangote, Tiger Brands’ acquisition deal

    Nigerian, South African regulators approve Dangote, Tiger Brands’ acquisition deal

    •Former Dangote Flour Mills to revert to former name, Dangote

    All appeared set for the return of former Dangote Flour Mills (DFM) Plc, now rebranded Tiger Branded Consumer Goods (TBCG) Plc, to its former name and its founding majority shareholder, Alhaji Aliko Dangote’s Dangote Industries Limited (DIL).

    Reliable sources in the know of the transaction said regulatory authorities in Nigeria and South Africa have approved the deal between TBCG’s majority core investor, South Africa’s Tiger Brand and the second major shareholder, DIL to sell Tiger Brands’ majority equity stake to DIL.

    Dangote Group’s DIL had in 2012 sold 63.35 of its equity stake in DFM to Tiger Brands in a $181.9 million deal. The deal saw transfer of 3.17 billion ordinary shares out of Dangote Group’s 3.67 billion ordinary shares of 50 kobo each in DFM to the Tigers Brand. The deal then was approximately valued at more than N28 billion, according to prevailing exchange rate.

    After nearly four years of successive losses and impairing of assets, Tiger Brands reached agreement with DIL on December 11, 2015 to resell the troubled flour-milling company to DIL.

    The sources said the Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator; Nigerian Stock Exchange (NSE), where TBCG is listed and all necessary South African regulatory agencies have approved the deal.

    The sources indicated that the transfer of the shares of TBCG from Tiger Brands to DIL would soon be done through the negotiated cross over window of the Nigerian Stock Exchange (NSE). The transfer of shares would subsequently be followed by the return of the company to its former name, which many stakeholders consider to be a stronger brand than the current name. The Dangote Group is the most capitalised quoted business group in Nigeria with four major companies including Dangote Cement, cement; Nascon Allied Industry, salt; Dangote Sugar Refinery, sugar; and TBCG, flour. It has several unquoted subsidiaries that are involved oil and gas, telecommunications, fruit drinks and transportation among others.

    The Nation had in late December 2015 exclusively reported the details of the acquisition deal. Under the deal, Tiger Brands Limited, South Africa’s largest food company, would divest its shareholding to Dangote Industries Limited (DIL), the holding company of Africa’s richest man, Alhaji Aliko Dangote.

    A report obtained by The Nation, which outlined the key details of the Share Sale Purchase Agreement (SSPA), indicated that Tiger Brands will transfer and sell its 65.66 per cent majority equity stake in TBCG to DIL for a nominal consideration of $1. The South African majority core investor will also absorb N15.76 billion in debts.

    It was the first report to outline the key financial considerations of the acquisition. TBCG has 5.0 billion ordinary shares of 50 kobo each with market capitalisation of about N5.9 billion.

    In consideration for the transfer of the 65.66 per cent equity stake to DIL, DIL will inject N10 billion in form of a convertible shareholder’s loan into TBCG in January 2016. The convertible loan implies that DIL, at its option, will automatically have higher majority equity stake whenever it decides to exercise its convertible option.

    “Tiger Brands Limited will transfer/sell its shares (3,283,277,052) to Dangote Industries Limited for a nominal amount ($1) in consideration for Dangote Industries Limited injecting N10 billion in January in the form of a convertible (at lender’s option) shareholders’ loan,” according to the report.

    Besides, “Tiger Brands Limited’s loan to TBCG of N10.25 billion will be extinguished by way of debt forgiveness to the company” and “Tiger Brands Limited will assume the Stanbic IBTC debt of N5.51 billion and pay up the outstanding amount due to the bank”.

    DIL has already given a guarantee of its continued financial support to TBCG for at least 12 months to stave off threats of liquidation facing the company.

    External auditors to TBCG- Akintola Williams Deloitte, had expressed worries that accumulated losses and continuing decline in operational performance that had wiped out shareholders’ funds could threaten the survival of the ailing flour-milling company.

    In the latest audit of the group, the external auditors noted that the group had accumulated losses of N23.1 billion and a negative equity of N3.1 billion by the year ended September 30, 2015. “These conditions indicate the existence of a material uncertainty which may cast doubt on the Group’s ability to continue as a going concern,” the audit report stated.

    Key extracts of the audited report and accounts of TBCG for the year ended September 30, 2015 showed that the group recorded a net loss after tax of N12.68 billion in 2015, a double on a net loss of N6.28 billion recorded in comparable period of 2014. Turnover had increased from N41.27 billion in 2014 to N48.03 billion. Gross profit also rose from N3.21 billion to N4.47 billion. But a combination of interest expenses, related party expenses and administrative costs continued to undermine the company’s performance. Operating loss rose from N6.43 billion to N8.58 billion. Loss before tax thus jumped to N12.47 billion in 2015 as against N9.29 billion in 2014.

    The group’s total assets declined from N54.8 billion in 2014 to N49.35 billion in 2015. Conversely, total liabilities rose from N45.19 billion in 2014 to N52.43 billion in 2015.

    A subsequent interim report on the company for the period ended December 31, 2015 showed some marked improvement, although it remained under loss and deficit was still about N4 billion. Turnover inched up to N10.672 billion by December 2015 as against N10.665 billion recorded in comparable period of 2014. Gross profit rose by 8.5 per cent from N1.17 billion to N1.27 billion. With foreign exchange gain of 962.4 million in 2015 as against forex loss of N1.29 billion in comparable period of 2014, operating loss reduced from N2.225 billion in December 2014 to N39.09 million in December 2015. Interest costs however rose from N761.53 million to N936.48 million. Loss before tax still reduced from N2.99 billion to N975.265 million while loss after tax reduced from N2.92 billion to N900.76 million. However, net assets was negative at N3.97 billion by December 2015 as against positive standing of N6.69 billion by comparable period of 2014.

    It should be recalled that Tiger Brands, which recently renamed the former DFM as TBCG, had in November 2015 announced that it would no longer extend funding to the struggling Nigerian subsidiary, in a major boardroom crisis that saw the exit of Alhaji Aliko Dangote and other Nigerian directors loyal to him from the board of TBCG.

    The repurchase agreement between Tiger Brands and DIL had generated controversy with some operators and shareholders expressing concerns on the propriety of the deal.

    DIL has defended the decision to “buy” back its former subsidiary on the need to prevent the company from going under and save over 3,000 jobs of Nigerians.

    While some stakeholders have questioned the rationale behind the investment decision by DIL, sources close to the Dangote Group said the company had to consider the repurchase of TBCG so as to keep the company as a going concern, which preserves value for the minority retail shareholders. The move also secured direct employment for over 3,000 employees.

    “Going by every indication, the future of the company was very doubtful and that was risky for the employees which are over 3,000 Nigerians apart from others who benefit from the company’s services through other ancillary services. The return of DIL is therefore a big relief and good decision to save the jobs of the staff of TBCG,” a Dangote Group source said.

    It should also be noted that Dangote Group’s companies are the main trading partners to TBCG, according to latest audit. DIL provides strategic management services while other Dangote Group’s companies provide wide-ranging services from haulage to packaging to raw materials and shipping among others.

     

     

     

  • Nigerian, South African artistes challenge MTN on copyright

    Nigerian, South African artistes challenge MTN on copyright

    Nigerian Highlife music sensation, Flavour N’abania and his South African colleague, DJ Cleo have requested sales data from MTN, its subsidiary and content aggregator, Content Connect Africa (CCA), and Vodacom, suspecting that their copyright has been infringed upon, sources have said.

    Although the companies have denied any such infringements, pundits reason that their liability could run into billions in unpaid royalties and fines in South Africa alone.

    ‘It is not correct that MTN is liable for billions of rands in royalty payments’ said sales, marketing and distribution executive, Larry Annetts.

    According to City Press, if they can prove copyright violations, the SA Copyright Act provides for a first offence fine of up to R5 000, or a jail term. If it is a repeat offence, the act provides for a fine of up to R10 000 or a jail term, per infringement.

    Copyright expert Graeme Gilfillan, representing DJ Cleo’s company, Will of Steel Productions, and Flavour’s company, 2Nite Enter10ment, began sending out separate requests for data from MTN, Vodacom and CCA since mid-December.

    Annetts however maintained that “MTN is up to date with most royalty payments with Capasso and is in the process of settling the recent royalty invoice…for the current period, which amounts to less than R1million. MTN understands the importance and imperative of paying music royalties for music that it sells on its platforms. With regard to payment of mechanical royalties, we have…been trying to resolve [this] from as far back as 2012.”

    He added that “MTN has been dealing with alleged claims for Will of Steel Productions since 2012…Mr Gilfillan was invited to participate in this process; however, MTN had not received any document or response from him.”

    In the same vein, Vodacom has rejected any suggestion of criminal misconduct. “We have communicated with Mr Gilfillan on this issue on an ongoing basis. Vodacom informed Mr Gilfillan that it reports to CCA…in respect of his clients’ recordings. Mr Gilfillan needs to approach CCA,’ it stated, just as CCA is saying that, ‘Neither Will of Steel nor 2Nite Enter10ment has shown any proof that they each own the songs and publishing underlying the sound recordings.”

    According to CCA’s Antos Stella, “CCA denies that it has infringed the copyright of Will of Steel and 2-Nite-Enter-10-ment’s copyright in any of their songs and publishing. We informed Gilfillan that CCA sends recording royalty statements to his clients and that his clients are in possession of these statements, We informed him that mechanical royalties are reflected on statements sent to his clients… CCA can prove that it receives invoices from Will of Steel and 2Nite Enter10ment for recording royalties and that it pays them.”

  • Davido, manager robbed in South African

    Davido, manager robbed in South African

    HKN Boss and one of Nigeria’s superstars, David Adeleke, aka Davido, was last weekend, robbed in South Africa. The artiste, who made this known via a snapchat video, said that the incident took place as himself and his manager made their way to their hotel.

    According to the artiste, the robbers made away with their watches, jewelry and passports. However, no injuries were sustained and no lives were lost in the unfortunate incident.

    “My manager lost his $60,000 watch. It’s crazy,” Davido said in a Snapchat video. “They didn’t see it though,” he said, brandishing his custom made HKN Chain.

    Only recently, Davido pampered himself with a brand new Audi R8 which he was reported to have acquired as an early birthday gift for himself.

  • Volkswagen to spend $343m on South African factory revamp

    German carmaker Volkswagen plans to spend 4.5 billion rand ($343 million) to upgrade its factory in South Africa and improve its supplier base, it has said.

    Most of the money would be used to revamp its factory in Uitenhage in Eastern Cape province to produce new models, Thomas Schaefer, head of Volkswagen’s South African unit, said.

    VW has been pushing for greater scale under Chief Executive Martin Winterkorn’s eight-year reign, propelled by adding brands and factories and roaring sales in China.

    VW is the second-biggest auto maker by sales in South Africa after Toyota. Its vehicles are sold domestically as well as exported to the rest of Africa.

    Other manufacturers in the country include Ford Motor Corporation, BMW and General Motors.

     

  • South African bonds attract foreign investors

    south African bonds are up against quickening inflation, rising interest rates and the prospect of a Federal Reserve rate increase. That’s not deterring offshore investors.

    South African rand debt attracted the largest inflows in July out of eight emerging markets including Russia, Turkey and Poland, according to data compiled by Bloomberg. Foreigners bought a net $600 million of the nation’s bonds in the month, the most since April, the data show.

    Benchmark yields have climbed 120 basis points since January, making them the fourth-highest among emerging-markets tracked by Bloomberg indexes. The sell-off pushed yields to a level where they compensate investors for the risk of a Fed rate increase, which would draw money to the dollar, as well as prompting a tightening by the South African Reserve Bank as inflation accelerates, according to Pioneer Investment Management Ltd.

    “We increased positions in the last three months,” Hakan Aksoy, a portfolio manager at Pioneer, which oversees $244 billion, said by phone from London. “If there’s another sell-off, we would like to increase duration risk” in South African debt, provided the Fed doesn’t exceed expectations for rate increases this year, he said.

    Economists project a 50 percent chance the Fed will start with interest rate increases at its September meeting, according to the median probability of 46 economists in a Bloomberg News survey. Almost half the economists said the policy rate, currently near-zero, will end the year in a range of 0.5 percent to 0.75 percent.

    South African bonds could benefit if the Fed proceeds more cautiously, said Aksoy, who favours maturities from five to 15 years. Fed policy makers said the labour market and housing have improved, moving closer to ending an unprecedented period of near-zero interest rates, without providing a clear signal on the timing.

    “We are expecting a relatively slower rate hike process from the Fed,” Aksoy said. In that case, “South Africa will benefit more than the other emerging-market countries” as the bonds have sold off more than most peers.

    Yields on benchmark securities due December 2026 climbed 2 basis points to 8.27 percent by 4 p.m in Johannesburg, the highest since July 7. The rand strengthened 0.7 percent to 12.6151 per dollar after slumping 1.3 percent on Thursday to a record low close.

     

  • ‘South African unions may accept pay offer’

    The leaders of South Africa’s biggest gold producers said it’s likely unions will accept an improved pay offer as the industry looks to avert a repeat of a strike that crippled the world’s biggest platinum mines for five months.

    Gold has dropped 10 percent since wage talks started June 22, touching a five-year low and hurting companies already contending with higher output costs. In the revised proposal, producers reduced their wage-deal term to three years from five and said they would increase basic pay by more than before.

    “I think it’s extremely likely that they will accept,” Harmony Gold Mining Co. Chief Executive Officer Graham Briggs told reporters in Johannesburg Friday. “It’s a fair offer. It’s a final offer.”

    A strike over pay halted most South African mines of the world’s three-biggest platinum operators from January to June last year.

    “The appetite for anything similar to what happened in platinum is not very high,” Sibanye Gold Ltd. Chief Executive Officer Neal Froneman said.

    AngloGold Ashanti Ltd. and Sibanye proposed to raise monthly pay for entry-level workers by 1,000 rand ($79) annually for the three years started July 1, 2015, they said last week  in a statement. Harmony offered a 500-rand increase. Basic pay is currently about 5,800 rand. Living-out allowances will be raised by 100 rand in the first year from 2,000 rand now.

    The revisions would mean increases of as much as 11 percent for Harmony’s lowest-paid workers and 13 percent for Sibanye and AngloGold employees in the first year, the companies said Friday. South Africa’s inflation rate was 4.7 percent in June.

    The increase of monthly pay doesn’t translate into higher benefits, and the offer only applies if all four unions agree to it, the companies said.

    The National Union of Mineworkers, which speaks for about 52 percent of employees at the producers, this month lowered its demand for basic pay to 9,500 rand. While that was 9.5 percent below its previous request, it’s still at least 60 percent more than current wages. The organisation is disappointed with the offer, NUM General Secretary David Sipunzi has said .

    The NUM, Solidarity and UASA will respond to the proposal by August. 7, while the Association of Mineworkers and Construction Union said August 4, Elize Strydom, the chief negotiator on behalf of the producers at the Chamber of Mines, told reporters.

  • Unions reject South African coal producers’ pay increase offer

    The four unions representing coal workers in South Africa, the continent’s biggest producer of the fuel, rejected a pay offer by producers including Anglo American Plc, Glencore Plc and Exxaro Resources Ltd.

    The companies proposed an increase of 4.6 percent, the Chamber of Mines, which represents them, said in an e-mail. The inflation rate was 4.6 percent in May.

    The National Union of Mineworkers, Solidarity, the Association of Mineworkers and Construction Union and UASA labour groups rejected the offer, Franz Stehring, head of mining at UASA, said by phone.

    The NUM, the biggest labour group, wants a 15 percent raise for members, spokesman Livhuwani Mammburu said by phone.

    The producers’ offer will “prolong the negotiations process,” Deon Reyneke, head of energy industry at Solidarity, said in an e-mailed statement.

    South Africa’s coal-mining industry directly employs almost 90,000 people and paid about 19 billion rand ($1.5 billion) in wages in 2014, according to the chamber. The talks are taking place as coal prices have dropped 31 percent since the start of 2014 amid a global supply glut that Morgan Stanley forecasts will grow due to lower demand from China.

    Negotiations will resume tomorrow, the chamber said.

     

  • South African Wines returns with tasting

    The Wines of South Africa (WOSA) grand tasting is returning to Nigeria. It will hold at the Federal Palace Hotel, Victoria Island, Lagos on Saturday, July 18, 2015.

    This event coincides with the Nelson Mandela Day. It is opened to those who are 18 and above, and is designed to showcase quality wines from over 25 wine producers and over 200 wine brands from different regions in the Cape Wineland of South Africa.

    Guests are expected to trade, taste and attend the exclusive South Africa Wine course. According to the organisers, “the wine course will be led by Wine Advisor, Brad Coetzer, from renowned education company, Beverage Intelligence.

    The course is opened to only Trade businesses such as importers, distributors, hotels F& B managers, retailers, portfolio managers, gourmet and brand reporters and general food and beverage service provider”.

    The yearly event is established as a platform that delivers an up-market audience in a very prestigious environment. It aims to create awareness for the South African category in the Nigerian market; the 12th largest importer of packaged wine from South Africa and the third biggest among African countries.

    The Managing Director, Spronks Creations Ltd, Aderonke Sobodu, the organisers, said some of the finest South African wines would be on parade as WOSA would showcase wines from the leading family owned Wine Estates in South Africa, such as Ken Forrester, Paul Cluver, MAN Vintners, DGB, Noble Hills Estate, Rainbow End wine Estate, Robinson & Sinclair, Tamasa wines, Vondeling and Jordan, among others.

  • South African actress on why she went nude

    South African actress on why she went nude

    A South African actress, Noluvuyo Sodela, who went nude to campaign against the recent xenophobic attacks in her country, has described the act as the best way to voice-out and fight against the carnage.

    Speaking exclusively to The Nation, she explained why she involved herself in campaigning against the odds. “I went semi-naked in a form of Art perspective way and it was the best I could do to voice out and fight inhuman xenophobia attacks. It worked for me as I passed the message and I’m glad it went viral.”

    Responding to what people thought her motive for going nude was, she said, “It

    was never a publicity stunt or any form of trying to get fame. However I wanted an attention to fellow South Africans to take a pause and read my message, I mean how hurtful I am by the senseless attacks.”

    While commending her family members and friends for being supportive in the move she made, the actress explained what the pictures meant to a common man.

    “My loving family and friends are very supportive, because they know I would never do something stupid. They understand the method of Art, and it’s not like I was involved in some kind of pornography, but candidly those photos are called ‘EROTIC’ in English.”

    When asked what her biggest challenge was, she said, “My biggest challenge is people’s insufficient knowledge of art to celebrity’s life styles.”

    According to the 21-year-old Zulu-speaking actress, “I never decided to be an actress, it’s a calling and I was called. A friend of mine, Obey Muchipisi who is a Zimbabwean-born actor once booked me to be an extra and a feature role on a TV soapie Generations and Sam Mlahleki my homie introduced me at Mountain Cultural drama classes that was situated at City Varsity in 2012, hosted by Bra Mountain.”

    The actress, a known feminist, has been in the film industry for three years.