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South African billionaire Koos Bekker sees Naspers shares drop in value by $111.1 million

The drop occurred after its Dutch subsidiary Prosus announced plans to acquire Naspers shares.

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South African billionaire Koos Bekker.

South African billionaire Koos Bekker’s ownership stake in the leading Internet group Naspers Ltd. has lost about $111.1 million of its market value. 

The drop occurred after the company’s Dutch-listed subsidiary Prosus announced its intention to acquire Naspers shares.

Prosus is a subsidiary of Naspers founded under Bekker’s leadership as the company’s global Internet assets division. It has grown to become the largest consumer Internet company in Europe and one of the biggest technology investors internationally, with operations across various platforms and geographies.

The subsidiary moved on May 10 to implement a voluntary share exchange for Naspers shareholders, with the view to deliver immediate and long-term value creation for both Naspers and Prosus shareholders.

Under the voluntary share exchange offering, Prosus would acquire 45.4 percent of the issued non-voting shares of Naspers in exchange for newly issued Prosus non-voting shares. This would take Prosus’ overall interest in the parent company to 49.5 percent.

News of the transaction sent shockwaves through the market, as Naspers’ share price declined by more than 9 percent after the announcement. This led to a drop in Naspers’  market valuation, as well as the market value of the shares held by company insiders.

Bekker, who is a major shareholder in Naspers holding an indirect stake of 4,688,691 non-voting shares, has seen his stake decline in market value from $1.123 billion to $1.012 billion. This is a market value loss of about $111.1 million, or 9.89 percent.

Bekker is known for transforming the South African newspaper publisher Naspers into an eCommerce investor and cable TV powerhouse. 

The South African-born businessman has a net worth of about $2.9 billion, according to Forbes. 

Bekker led Naspers to invest in the Chinese Internet and media firm Tencent in 2001. 

The position has proven by far to be one of his most profitable investments.

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South African billionaire Patrice Motsepe’s net worth slumps by $400 million as rand tumbles

Despite his declining net worth, Motsepe remains one of South Africa’s richest men.

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Patrice Motsepe. ©Billionaires.Africa

South African billionaire businessman Patrice Motsepe’s net worth has plummeted by millions of dollars since the start of the year due to a decline in the value of the South African rand against the U.S. dollar.

The tumbling of South Africa’s national currency has significantly impacted the market value of Motsepe’s mining and financial services companies.

One of Africa’s richest businessmen and the wealthiest Black billionaire in Southern Africa, Motsepe has seen his net worth fall by $400 million since the year began — from $3.1 billion to $2.7 billion at the time of writing.

The majority of his net worth is derived from his 39.7-percent stake in African Rainbow Minerals (ARM), a South African mining company he founded in 1997. Motsepe also owns a substantial shareholding in Ubuntu-Botho Investments and African Rainbow Capital.

Motsepe’s stake in the mining firm, which has positions in a variety of mines including iron, coal, copper, gold, and other precious metals, was valued at $1.16 billion at the close of trading on the Johannesburg Stock Exchange on Tues., Aug. 9, significantly lower than its value of $1.3 billion at the start of this year.

His recent wealth loss puts him in the ranks of those African billionaires whose net worth has dropped by more than $300 million this year, including Ethiopia’s richest man Mohammed Al-Amoudi, South African billionaire Johann Rupert, Zimbabwean tech tycoon Strive Masiyiwa, and Swazi billionaire businessman Natie Kirsh.

The sharp depreciation of the rand, which has impacted the market valuation of his companies, most of which are based in South Africa, comes on the heels of a recent surge in demand for the U.S. dollar, as investors seek the safety of the greenback in an era of high economic uncertainty.

Despite his declining net worth, Motsepe remains not only one of South Africa’s richest men, but also one of the continent’s wealthiest billionaires.

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Namibian tycoon Quinton van Rooyen’s Trustco wins round in court against JSE

Shares in the group rose 35.56 percent as a result.

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Quinton van Rooyen.

Trustco Group, an investment holding majority owned by Namibian businessman Quinton van Rooyen and his family, has won a round in court against the Johannesburg Stock Exchange (JSE).

The Pretoria High Court ruled that the company may not be suspended from the JSE until the hearing of its review application in September.

The presiding judge, Nicoline Janse van Nieuwenhuizen, pre-dismissed every argument made against Trustco. The judge issued a decision, in which she ordered the JSE to be interdicted and restrained from suspending Trustco shares from trading on the local bourse.

“The grounds of review are all deserving of a proper hearing in due course, and I am satisfied that Trustco has asserted a prima facie right to fair and just administrative action,” she said in her decision.

In response to the news, shares in the group rose 35.56 percent to R0.61 ($0.0367), from a price of R0.45 ($0.0271) at the start of trading this morning.

The increase in Trustco’s share price pushed its market capitalization above R985 million ($60 million) and the value of van Rooyen’s 63.94-percent stake above R630 million ($38 million).

The court also prohibited the JSE from implementing or attempting to implement the decision that Trustco restate its annual financial statements for the fiscal year ending March 31, 2019, as well as the interim results for the six months ending Sept. 30, 2019.

The legal battle between Trustco and the JSE began on Nov. 11, 2020, when the exchange’s authorities claimed that the company had not met the listing requirements for its 2019 annual financial statements and 2020 interim results.

As part of the allegations, the JSE accused Trustco of violating international accounting standards by misrepresenting features of two loans and reclassifying land that it owns.

Trustco questioned the JSE’s authority to order corporations to amend their financial statements. It claimed that only boards have that authority and stated that all transactions had been “exactly accounted for, reported, and disclosed.”

Amid the legal battle between Trustco and the JSE, wary local bourse investors sold their stakes in the company, fearing a potential delisting of its shares, which caused the share price to crash to an all-time low in July before rebounding recently by double digits.

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South African tycoon Jens Montanana’s Datatec acquires UK-based firm after closing $252-million deal

Datatec is a South African ICT services provider.

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Jens Montanana.

Logicalis UK&I has acquired Q Associates, one of the UK’s leading IT consultancies services, as part of its strategy to expand its expertise in digital infrastructure.

Logicalis UK&I is a wholly owned subsidiary of Datatec, a South African multinational technology group led by businessman Jens Montanana.

The news comes after Datatec sold its management consulting business for R4.12 billion ($252 million) to UK fund manager Bridgepoint Development Capital.

The acquisition, which provides IT consultancy services for data management, protection, compliance, and information security, aligns with the group’s strategic growth plans.

Montanana, Datatec’s CEO, commented on the transaction, which is subject to regulatory approval, stating that it will broaden Logicalis UK&I’s reach and add value to customers across industries.

“The acquisition of Q Associates will extend the reach and skills of Logicalis UK&I, underlining our commitment to grow and provide increased value to customers across all sectors, especially higher education and government secured services,” he said.

According to a press release obtained by Billionaires.Africa, the transaction complements Logicalis UK&I’s core expertise in digital infrastructure, networking, and cloud, enabling a broader portfolio of best-in-class solutions and services for customers operating in a digitally enabled world.

Datatec is a South African provider of ICT services, specializing in software and cloud computing solutions such as Infrastructure as a Service and Software as a Service.

The ICT services company has expanded to more than 50 countries across North America, Latin America, Europe, Africa, the Middle East, and the Asia-Pacific under the leadership of Montanana, who founded the group in 1986 and owns a significant 11.98-percent stake in the group.

The multinational technology group sold its management consulting business Analysys Mason to Bridgepoint Development Capital for R4.12 billion ($252 million) more than a month ago in a move to unlock value from its investments in the technology industry.

As of press time, Datatec shares were trading at R44 ($2.64) per share, 25 basis points lower than their opening price on the local bourse this morning, giving the group a valuation of R9.78 billion ($588 million).

Montanana’s position in the company is valued at R1.17 billion ($70.4 million).

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