't zal maar gebeuren schreef op 20 januari 2016 09:26:
www.bdlive.co.za/companies/2016/01/20...SA needs to tackle many question marks about its future in its year-end results presentation early next month. The outcome of its proposed broad-based black economic empowerment transaction springs to mind.
This is because the parent ArcelorMittal group effectively bought most of the shares in its South African subsidiary in a rights offer of R4.5bn that closed on Friday, with a view to recapitalising the company and settling debt of about R3.2bn. That means liquidity has become like treacle. At R6.50 per rights offer share, it appears unsurprising that less than 20% of other pre-rights issue shareholders followed their rights, after the share fell to a low of nearly R4 in November, rising to R5.37 on Friday. Perhaps they had forgotten about the halcyon days last February when it was trading around R26.
One question that needs to be asked is why, if the parent owns most of the company, it should remain listed on the JSE. The pending empowerment deal may answer that, depending on how much equity is taken up. If it delists, existing shareholders in the market could take a bath. If not, will empowerment save the company and appreciably push up its shares?
ArcelorMittal SA expects to benefit from the further substantial depreciation of the rand and the new 10% tariff on imported primary steel, as well as potential additional specific "antidumping/safeguard" duties. For now, though, big questions remain unanswered.• Nick Wilson edits Company Comment (wilsonn@bdfm.co.za)