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<p>South African focussed shares are back in vogue a few weeks before elections that may see the ruling African National Congress forced to share power for the first since democratic rule came in 1994. So what are they and why now? Joining CNBC Africa for this discussion are Mandisa Zavala, Head of Asset Allocation, Alexforbes, Zwelakhe Mnguni, CIO, Benguela Global Fund Managers, David Crosoer, Chief Investment Officer at PPS Investments and Jason Swartz, Portfolio Manager, Old Mutual Investment Group.</p>


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The Power Table: Asset allocation in the election year

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Sasol has seen an astonishing decline in its share price since Monday’s oil price war. Its share price has fallen over 66 per cent this week and almost 90 per cent this year. For as long as Saudi Aramco and the government keep pumping oil into the market, is it worth holding onto Sasol? Joining CNBC Africa to give analysis is Zwelakhe Mnguni, Chief Investment Officer at Benguela Global Fund Managers and Abdul Davids, Head of Research at Kagiso Asset Management.</p>


Is there a silver lining for troubled Sasol?

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<p>Sasol’s joint CEOs Bongani Nqwababa and Stephen Cornell voluntarily resigned following a review of its Lake Charles Chemicals project, which has been hit by delays and rising costs. Sasol’s share price has lost more than a third of its value in 2019 and has declared that they will not declare a dividend in this reporting period. Portfolio Manager at Benguela Global Fund Managers, Karl Gevers joins CNBC Africa for more.</p>


Analyst responds to Sasol joint CEOs biting the dust

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<p>Sasol has announced that it has completed its review into cost overruns at its Lake Charles project and expects to release its results on the 28th of October. The company is at risk of a suspension on the JSE because of the delay. Joining CNBC Africa for more is Karl Gevers, Portfolio Manager at Benguela Global  Fund Managers.</p>


What investors expect from Sasol’s board review

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<p>The Johannesburg Stock Exchange has had its worst third quarter performance in 9 years with a 5 per cent decrease since the end of June.</p>


Where to find value on the JSE in Q4

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<p>Is the grass finally greener for Steinhoff investors? Joining CNBC Africa for more is Zwelakhe Mnguni, Chief Investment Officer, Benguela Global Fund Managers.</p>


This fund manager never invested in Steinhoff, here’s why they won’t touch it


<p><em>Benguela Global Fund Managers says that Omnia’s rising debt levels and ballooning working capital requirements were among the reasons it advised clients to dump the stock. Having sold out of Omnia at R68 a share, the fund manager is now alleging that management is destroying shareholder value and it is not adhering to ESG standards. CNBC Africa’s Karabo Letlhatlha sat down with Karl Givers, Head of Research, Benguela Global Fund Managers</em>. <em><strong>WATCH</strong></em>: <a href="http:// https://www.cnbcafrica.com/videos/2019/07/26/shareholders-approve-omnia-share-sale/">As Omnia&#8217;s shareholders approve restructuring plan, here&#8217;s why Benguela was advising clients to dump the stock</a></p>



<p><em>CNBC Africa offered Omnia a right of reply. This is what its CEO Adriaan de Lange had to say:</em></p>



<p>Thank you for offering Omnia the right of reply to the Benguela allegations. We prefer to engage directly with our shareholders and have been doing so on a regular basis, including with Benguela which is not currently a shareholder. The JSE has also been included in this engagement process.  We have provided extensive and comprehensive answers to the first lengthy letter received and are in the process of answering the 58 page letter received two days ago.  We are also arranging a meeting with Benguela and are prepared to engage with any shareholder who has questions. </p>



<p>We would like to give you some high level
responses to the allegations and would also like to emphasise that Omnia is not
comparable to Tongaat or Steinhoff. Omnia has published its results timeously
with an unqualified audit report. In fact, at this point, Omnia is in a solid
position, with a robust business, a short term liquidity bridge loan and the
98% approval by shareholders yesterday of the R2 billion rights
issue.&nbsp;&nbsp; </p>



<p><strong>Board Independence</strong></p>



<p>The Board has assessed the independence of the
non-executive directors and is satisfied that all demonstrate the required
levels of independence to execute their duties.&nbsp; Depending on their
tenure, members retire annually and stand for re-election at the AGM at which
all shareholders have a vote. Rod Humphris, the non-independent chairman for
the past 2 years has recently retired from the board and has been replaced by
the lead independent director, Ralph Havenstein. </p>



<p><strong>Remuneration</strong></p>



<p>With approval of shareholders, Omnia has long
term and short term incentive plans for management to guard against short term
pursuit of revenue at long term cost.&nbsp; The current schemes are under
review and shareholders will be engaged before they are finalised. </p>



<p><strong>Audit Firm</strong></p>



<p>Omnia is aware of and supports audit firm
rotation which will be mandatory from 2023. </p>



<p><strong>Allocation of capital</strong></p>



<p>Omnia concluded the acquisitions of Umungo and
Oro Agri after in-depth research, thorough and intensive due diligence,
including comprehensively investigated historic earnings levels, board
engagement, independent finance, legal and tax advice, and valuation. The
expected level of earnings did not immediately materialise and was exacerbated
by the economic headwinds which ultimately culminated in the decision to
de-gear and restructure the debt facilities.</p>



<p><strong>Misleading
communication</strong></p>



<p>Our SENS on 23 April
was factually correct at that time: Omnia was involved in restructuring its
debt, but the nature and extent was not yet clear, no repayment of any debt was
required and there was no requirement for recapitalisation. The announcement
did not provide assurance that there would not at a future time be a need for
recapitalisation. The SENS announcement clearly stated that once the process
was complete, the outcome would be communicated. The 30 May announcement, at the conclusion of
the process, contained the decision to announce a rights issue.&nbsp; </p>



<p>We acknowledge that we experienced a
series of negative factors:&nbsp; severe weather patterns, challenging
financial year, difficult operating environment.&nbsp; We had used retained
earnings to grow and found ourselves exposed.&nbsp; This led to fast
accumulation of debt.</p>



<p>As noted in our recent results, we
have implemented a targeted plan. We have new systems and revised processes,
improved risk management and governance.&nbsp; We will continue to review our
business structure, streamline operations, extract more value and reduce costs.
We believe in the intrinsic value of the Omnia business. </p>



<p><strong>ADRIAAN DE LANGE</strong></p>



<p><strong>CEO: OMNIA</strong></p>


Omnia’s CEO: Why we are not comparable to Steinhoff or Tongaat

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<p>Benguela Global Fund Managers say that Omnia’s rising debt levels and balloon working capital requirements were among the reason they advised clients to dump the stock. Having sold out of Omnia at R68 a share, the fund managers are now alleging the management is destructing shareholder and a lack of adherence to ESG standards. CNBC Africa’s Karabo Letlhatlha sat down with Karl Givers, Head of Research, Benguela Global Fund Managers.</p>


As Omnia’s shareholders approve restructuring plan, here’s why Benguela was advising clients to dump the stock

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<p>CNBC Africa reporter Kopano Gumbi spoke with Karl Gevers, Head of Research at Benguela Global Fund Managers on PwC’s report on the Steinhoff scandal.</p>


Benguela reacts to PwC’s report on Steinhoff scandal

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<p>Steinhoff shares fell a further 3 per cent in early morning trade but has since recovered on the news that creditors would have to wait a little longer to find out who has been nominated to receive consent fees. Zwelakhe Mnguni, Chief Investment Officer at Benguela Global Fund Managers, says that Steinhoff is not the only company on the JSE we should be worried about.</p>


Why investors should watch out about these JSE listed companies

<p>South African lender Capitec Bank Holdings dismissed Benguela Global Fund Managers’ letter on Thursday, which had raised concerns about the lender’s business practices.</p>
<p><img loading="lazy" decoding="async" class="aligncenter wp-image-41825 size-full" src="http://cnbc.africa/wp-content/uploads/2017/02/capitec-wikimedia.jpg" alt="S.A’s Capitec Bank says media sensationalising Summit court case" width="1212" height="1024" /></p>
<p>Benguela wrote to Capitec last month, questioning the lender’s policy on rescheduling problem loans, the South African fund manager said in a statement to its clients seen by Reuters on Wednesday.</p>


South Africa’s Capitec dismisses Benguela global fund report

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<p>Zwelakhe Mnguni, Chief Investment Officer at Benguela Global Fund Manager, a Shoprite investor, who is opposed to Steinhoff taking a controlling stake in Africa’s largest retailer tells CNBC Africa why Steinhoff’s board must step down.</p>


Steinhoff’s entire board needs to go, including Wiese – shareholder

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<p>The JSE welcomed its 14th and biggest entrant of the year on the exchange today.</p>


What does STAR listing mean for minority Shoprite shareholders?

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<p>As the JSE prepares to welcome its newest entrant, The Steinhoff Africa Retail or STAR for short, much as been made about its crown jewel- Shoprite and the manner in which its controlling stake will be acquired.</p>


Benguela Global Fund Managers

The Power Table: Asset allocation in the election year

Is there a silver lining for troubled Sasol?

Analyst responds to Sasol joint CEOs biting the dust

What investors expect from Sasol’s board review

Where to find value on the JSE in Q4

This fund manager never invested in Steinhoff, here’s why they won’t touch it

Omnia’s CEO: Why we are not comparable to Steinhoff or Tongaat

As Omnia’s shareholders approve restructuring plan, here’s why Benguela was advising clients to dump the stock

Benguela reacts to PwC’s report on Steinhoff scandal

Why investors should watch out about these JSE listed companies

South Africa’s Capitec dismisses Benguela global fund report

Steinhoff’s entire board needs to go, including Wiese – shareholder

What does STAR listing mean for minority Shoprite shareholders?

The fight for control of STAR’s Shoprite

News Tips

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Benguela Global Fund Managers

The Power Table: Asset allocation in the election year

Is there a silver lining for troubled Sasol?

Analyst responds to Sasol joint CEOs biting the dust

What investors expect from Sasol’s board review

Where to find value on the JSE in Q4

This fund manager never invested in Steinhoff, here’s why they won’t touch it

Omnia’s CEO: Why we are not comparable to Steinhoff or Tongaat

As Omnia’s shareholders approve restructuring plan, here’s why Benguela was advising clients to dump the stock

Benguela reacts to PwC’s report on Steinhoff scandal

Why investors should watch out about these JSE listed companies

South Africa’s Capitec dismisses Benguela global fund report

Steinhoff’s entire board needs to go, including Wiese – shareholder

What does STAR listing mean for minority Shoprite shareholders?

The fight for control of STAR’s Shoprite

News Tips

Advertise With Us

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