COMPANY NEWS IN BRIEF

Habib Bank to be liquidatedThe Prudential Authority (PA) of the SA Reserve Bank on Friday launched court proceedings for the liquidation of Habib Overseas Bank, which was placed under curatorship in March. This was after the authority identified governance, compliance and operational failures. In a statement issued on Friday evening, the Reserve Bank said: In-depth assessments and analysis undertaken by the curator found that Habib Overseas Bank's financial position was significantly worse than that reported by the bank's management. The findings by the curator concluded that the bank was insolvent.In his report to the PA, curator Craig du Plessis said there was no reasonable probability that the bank could pay its debts or meet its obligations and become a successful concern. It was unlikely it would attract an investor to recapitalise the operation. Du Plessis also recommended an investigation into the bank's affairs.Last year investigative journalism outfit amaBhungane reported that the bank appeared to have been used by a money laundering syndicate to spirit funds overseas. Habib told the group it was the victim of an "unscrupulous client acting in concert and colluding with some staff members".Amabhungane also reported that low-cost cigarette manufacturer Gold Leaf moved funds to Habib once other banks closed their accounts. Gold Leaf's assets were provisionally frozen by the SA Revenue Service last year. A spokesperson for the tobacco group has denied any wrongdoing.-Fin24Vodacom revenue up 6% in SAThe acquisition of Vodafone Egypt in December last year has enabled the Vodacom Group to report a 37% growth in revenue to R35.7 billion in the quarter ended in June. Normalised and comparable revenue growth was 5.3%.In South Africa, its largest market, Vodacom relied on post-paid contract customers and the provision of financial services to increase revenue by 5.6% to R21.4 billion. Vodacom says it is confident that it will be able to sign an electricity wheeling agreement with electricity supplier Eskom, which will enable it to deliver into the power system from its own alternative sources to avoid downtime during load shedding. Revenue from new services - primarily financial and digital service - now accounts for almost one-fifth of its total revenue. Financial services remain a "clear strategic priority", increasing its revenue by 46% to surpass the R3 billion mark in a quarter for the first time. Vodacom's mobile money platforms (including M-Pesa) processed US$360.6 billion (R6.5 trillion) over the last twelve months, up 5.8%. M-Pesa now offers loans and services to merchants throughout its markets in east Africa.-Fin24Virgin Money to shut nearly third of UK branchesVirgin Money, a UK bank in which tycoon Richard Branson holds a near 14-percent stake, is to close almost one-third of branches as online banking accelerates, it has announced."The number of customers using bank branches for day-to-day transactions has been on a downward trajectory for a number of years," Virgin Money said in a statement Thursday, explaining its decision to shut 39 branches, putting around 260 jobs at risk.The move follows the mass closure of branches by other UK banks in recent years, namely the big four of Barclays, HSBC, Lloyds and NatWest.The closures have alarmed consumer groups who said the moves hit those who predominantly still use cash, particularly the elderly.The trend towards cashless payments and online banking has accelerated since the coronavirus pandemic.-Fin24Saudi Aramco locks up stake in RongshengSaudi Aramco said it had completed its purchase of a 10-percent stake in a Chinese petrochemicals firm, part of an expansion into the world's top crude importer.The Saudi energy giant unveiled plans in March to acquire the stake in Rongsheng Petrochemical, valued at US$3.4 billion.The deal calls for the supply of 480 000 barrels per day of Saudi crude to an integrated refining and chemicals complex owned by a Rongsheng affiliate."Our strategic partnership with Rongsheng advances Aramco's liquids to chemicals strategy while growing our presence in China and showcases our importance as a reliable supplier of crude oil," Aramco vice president Mohammed Al Qahtani said in a statement."This key acquisition is an important part of Aramco's long-term growth strategy, expanding our presence in a vital market."Rongsheng chairman Li Shuirong said the deal "marks the entry of Rongsheng and Aramco into a new era together, and also signifies an important step forward in Rongsheng's internationalization strategy."-Fin24Eskom and Transnet arrest fuel thievesAn Eskom senior shift supervisor at Matla power station and an oil tanker driver were arrested earlier this week for the theft of heavy fuel oil and fraud, the company announced on Saturday. Eskom said it had become aware that tanker drivers would offload fuel oil before arriving at the power station. Due to its poor performance, Matla is one of six power stations that Eskom has identified for particular interventions. False weighbridge slips were generated to show that the fuel had been delivered. In a statement, the company said: Drivers would offload the fuel oil at unknown locations before arriving at the power station. The tankers would then enter the power station empty. Weighbridge slips would be fraudulently registered and printed as if the ordered oil/fuel product was offloaded. Delivery notes were then signed off.The investigation began in December last year, supported by Bidvest Protea Coin, contracted to assist Eskom with security. The arrests were made by the police, and the suspects appeared in court on Thursday. The theft of fuel oil and diesel from Eskom and Transnet is a highly organised activity run by criminal syndicates. Former Eskom CEO Andre de Ruyter estimated that R1bn a month is lost to Eskom through theft.-Fin24PepsiCo plans to expand in AfricaWhen PepsiCo acquired Pioneer Foods in 2020, that R24 billion transaction wasn't only among the biggest the beverage and chips giant ever concluded outside of the US – it also paved the way for one of SA's largest empowerment deals.Two years after the merger, PepsiCo launched a R1.7 billion employee share scheme for its SA staff as part of the conditions imposed by the Competition Tribunal.A year after the launch of the workers' trust – and two others to develop local communities and boost PepsiCo's local procurement – the company is already preparing to "beat the enemy red" and take its combined brands beyond SA borders.Speaking at the Nedbank Top Empowerment Conference this week, PepsiCo's director of corporate affairs, Nico Moloto, said the merger has made them relevant in almost every food production department."Pioneer Foods has got a vast and robust portfolio of products. All of us had breakfast, all of us had lunch, and we are going to have dinner. During weekends, some of you are going to have parties. Some of you will have braais, and Pioneer Foods and PepsiCo products find themselves on all those occasions."-Fin24Twitter's bird branding could be replacedTwitter owner Elon Musk hinted late Saturday night that he may ditch the social media network's blue cartoon bird branding and soon for an edgier logo based on an "everything app" he has long alluded to called only X"Soon we shall bid adieu to the twitter brand and, gradually, all the birds," he tweeted around midnight, implying an end to the imagery from where the very word "tweet" stems."Like this but X," the billionaire SpaceX boss said, above a picture of the Twitter bird over a black and white marbled background."To embody the imperfections in us all that make us unique," he replied to the post.Twitter, founded in 2006 and whose name is a play on the sound of birds chattering, has used avian branding since its early days, when the company bought a stock symbol of a light blue bird for $15, according to the design website Creative Bloq.The 52-year-old Tesla founder has previously said that his rocky takeover of Twitter last year was "an accelerant to creating X, the everything app," a reference to the X.com company he founded in 1999, a later version of which went on to become PayPal.-Fin24Veuve Cliquot exploring new African marketsVeuve Clicquot, the Champagne maker that’s part of luxury-goods powerhouse LVMH, is exploring new markets in Africa as demand for premium products rises on the continent. The Champagne maker is considering expanding in East Africa or going west to Ghana as it looks to boost its presence on the continent, according to Chief Executive Officer Jean-Marc Gallot. The drinks maker, controlled by French tycoon Bernard Arnault, already sells its products in South Africa, Nigeria, and in Francophone countries, Tunisia, Morocco and Algeria. South Africa is the biggest market for Champagne exports on the continent, representing the 22nd largest destination for such exports in 2022, according to Comite Champagne. For Veuve Clicquot, a market share of 90% has allowed the country to sit among its top 10 markets globally. The company has benefited from the “the love for big brands” in SA, Gallot said, adding that the company will focus on retaining its market leader position there, as it expands on the continent.“By far, South Africa is the number one market for Champagne for us,” Gallot said in an interview with Bloomberg TV’s Jennifer Zabasajja in Johannesburg. “We have to go a little more to Kenya, we might even consider Tanzania and maybe some other countries.”-Fin24

COMPANY NEWS IN BRIEF

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Namibian Sun 2024-11-22

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COMPANY NEWS IN BRIEF

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Namibian Sun 2024-11-22

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