The share price of Transaction Capital, which owns WeBuyCars, fell almost 70% this week after it issued a trading statement that shocked investors.
Transaction Capital’s share price ended Monday on the JSE at R28.13. After the market closed on Monday, the company issued a trading statement, which said its interim core earnings per share would decline by no more than 50%. The company also announced that its unit, SA Taxi, which services the taxi industry, is in serious trouble.
By Friday afternoon, the company’s share price had fallen by as much as 69% to R8.79, but the shares were last trading at R11.50.
Following the news and the plunge in the company’s share price, investors raised an issue with how Transaction Capital chief executive David Hurwitz’s family trust sold R48.4m worth of shares in December last year – about three months before the company issued the shocking trading statement.
Balwin Properties reports a decline in apartments sold
Balwin Properties announced on Friday that it sold 2 780 apartments in the year ended February 2023, down from 2 962 apartments in the financial year that
ended February 2022.
The company said it adopted a defensive strategy in the handover of apartments in its latest financial year to ensure that its sales position remained robust.
“Regional trends continue to favour the coastal regions, especially the Western Cape, where demand remains resilient,” the company said.
African Rainbow Capital Investments sells Afrimat shares
Patrick Motsepe’s African Rainbow Capital Investments (ARCI) this week sold its remaining stake in mining company Afrimat for R486m.
ARCI also announced that it sold PayProp and Humanstate for R486m.
In addition, the holding company made a R490m investment in TymeBank and Tyme Global. ARCI also advanced R472m to phosphate producer Kropz.
“ARC Investments’ portfolio companies operated under stained trading conditions in the six-month period under review,” the company said in a statement.
Gold Fields and AngloGold may create Africa’s largest gold mine
This week, Gold Fields and AngloGold Ashanti announced they had agreed on the key terms of a proposed joint venture in Ghana between Gold Fields’s Tarkwa and AngloGold Ashanti’s neighbouring Iduapriem gold mines.
Gold Fields owns 90% of the Tarkwa Mine, and the Ghana government owns 10% of the operation.
The Iduapriem mine is 100% owned by AngloGold. Both gold mines are located near the town of Tarkwa.
“The proposed joint venture would create the largest gold mine in Africa and one of the largest in the world,” the two companies said.
Sun International reports a 44% increase in income in 2022
Sun International, which owns Sun City, announced this week that in 2022 the group’s income recovered strongly after Covid-19 and increased by 44% compared to 2021 to R11.3bn.
“Gaming income from casinos, Sun Slots and SunBet, which make up 80% of the group income, showed a significant recovery in income up 36%. The group successfully defended and grew market share in all provinces, while income generated from Sun Slots recovered to pre-Covid-19 levels,” the company added.
