Business Briefs (07-06-07)

achieved an operating profit of $40 billion for the period under review, which was an increase of 3 198 percent on prior year.
Compared to an average inflation of 1 265%, this significant growth over the previous year shows prudent management across the group.
Earnings per share grew by 2 31% from the previous of $2,67 to $64,54.
Sales revenue grew by 2 027% to $163 billion.
“The growth was adversely affected by declining sales volumes in some business and domestic sugar prices” said Sithole.
The group declared a final dividend of $8,68 from $0,66 showing a 1 143% increase.
He added that the company was increasing the dividend cover to seven times as a prudent measure to conserve cash for its growth initiatives. Group assets showed a significant growth from $8 billion in 2006 to $478 968 billion.
“The results underscore the adverse impact of Government price controls on sugar where inordinate delays in reviewing prices were experienced in the last half of the financial year,” said Sithole.
 
First Mutual to change name
FIRST Mutual Limited will granted shareholder approval to change its name to Africa First Renaissance Corporation Limited at the company’s annual general meeting to be held late next month.
According to a statement released this week, FML will, among a host of other critical resolutions, be seeking permission to convert and increase its authorised share capital, consolidate its share and buyback fractional shares resulting from the conversion among other special resolutions.
The name change will also require permission from the Registrar of Companies.
Shareholder ratification will also be needed to acquire the entire issued share capital of Red Door Financial Services, Renaisance Merchant Bank and Renaissance Securities.
FML will again be seeking permission to issue new shares in Pearl Properties while ordinary resolutions include conversion of the Employee Share Ownership Trust into a Staff and Agents Share Purchase Scheme as well as increasing the number of directors on the insurers board of directors.
The share conversion will see the company changing its authorised share capital from Z$50 000 divided into $5 billion ordinary shares of $0,00001 (revalued) into $50 000 divided into 5 million ordinary shares of $0,01 each.
FML will increase its authorised share capital to $100 million divided into 10 billion ordinary shares of $0,1 each by an addition of a further 9, 995 million ordinary shares of $0,1 each.
FML meetings are usually explosive as a result of the different interest groups within the company’s shareholding structures.
 
Z$12 bn profit for NTS
NATIONAL Tyre Services has posted a profit after tax of Z$12 billion up from $121 million for the 15 months ended March 31, 2007 from December 2005.
The company achieved good revenue growth of 9817% adjusted to compare 15 months to 12 months owing to investment property revaluation.
In a statement NTS said the results were in line with the average inflation posted during the 15month operational period.
“Our results compare favourably against average inflation for the period which was 1,195 percent,” said NTS in a statement accompanying the financial results.
Earnings per share reflected a percentage change of 8 058% as they went up to $49,97 from $0,49.
The company also said it hoped to attain an additional forceful frame in the foreseeable future.
“Our balance sheet remains sound, with good stock levels, adequate cash resources and a strong property portfolio combined with an investment in new capital commitment for a state-of-the-art IT package, we should attain a competitive edge in the future,” said NTS.
As a result of the board’s decision to invest in a new IT system, it was decided that a dividend would not be declared for the 15month period.
Although the hyperinflationary environment continues to present challenges towards achieving budgeted targets, focus on skills retention, increase of market share and the working capital management continued to be the main thrust of the company in the future, it said.
 
Mwana Africa pursues SouthernEra
MWANA Africa PLC, the holding company of Bindura Nickel Corporation BNC), says it will go ahead with tendering BHP Billiton’s 9,05% stake in SouthernEra Diamonds Inc to the company after the Canadian diamond miner failed to exercise the right-of-first-refusal (ROFR) within the prescribed period.
SouthernEra had until last week to exercise the ROFR following the announcement on May 8 by Mwana that the company had entered into an additional lock-up agreement with BHP Billiton to acquire 15,684,000 SouthernEra Diamond Inc common shares, representing approximately 9,05% of the outstanding common shares, for exchange for shares in the company.
Mwana said BHP Billiton had advised that it is free to tender its 9,05% SouthernEra stake. Under the shareholders’ agreement between BHP and SouthernEra, BHP said it has triggered SouthernEra’s ROFR.
By Wednesday (May 30) SouthernEra had not exercised its ROFR and Mwana’s chairman Oliver Baring was saying that his company would go ahead with a formal offer for the company, this which he said would be announced “in the coming few weeks”.
“By not exercising their ROFR, they (SouthernEra Diamonds) are signalling that they want to accept our offer,” Baring told Mineweb.
He said the offer would be made as a take-over bid circular, which will contain the full terms and conditions, including details of how the offer may be accepted.
Mwana already held 16,5 million SouthernEra shares, a 9,92% stake in the company. The company said it now controls 68,884,830 SouthernEra shares or about 39,76% of the company including the lock-ups, adding that SouthernEra shareholders have agreed to tender 52,427,330 shares or about 30,26%.
In March Mwana launched a hostile bid to take over SouthernEra, in a move aimed at creating the largest diamond miner in the Democratic Republic of Congo.
It offered one of its own shares for every 2,3333 SouthernEra shares, giving an implied value of C$0.42 a share and said it would pay CAN$69,7 million for the company.
Last week, SouthernEra rejected the takeover bid saying the offer proposed “significantly” undervalued the company.
The company runs the world’s fourth-most active diamond-exploration programme, with exploration in Canada, Australia, Gabon, the DRC, Zimbabwe and South Africa.
It also operates the Klipspringer diamond mine in South Africa and maintains an 18 per cent stake in the Camafuca diamond project in Angola.
Patrick Evans, Chairman of the Special Committee of SouthernEra, said, “The Mwana Proposal has come shortly before a period of expected significant risk reduction and associated value enhancement for the Company. A bulk sample at the Badibanga alluvial project is currently underway along with the drilling programme by BHP on the DRC Kimberlite JV. In addition, drilling has commenced on the company’s recently acquired diamondiferous kimberlite BK-16 in Botswana.”
However Wednesday Mwana’s Baring said the offer had not changed.
“We are not going to increase the offer,” he told Mineweb. “Ever since we made an offer to SouthernEra, its share price has more than doubled. Its shares are trading at over US$0,60, currently.”