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South African billionaire Michiel Le Roux’s stake in Capitec Bank soars as shares surge on local bourse

The star banker’s ownership stake has surged by about $250 million since April 13.



South African billionaire Michiel Scholtz du Pre Le Roux.

South African star banker and billionaire Michiel Scholtz du Pre Le Roux’s ownership stake in Capitec Bank CPI has surged by about $250 million (R3.5 billion) since April 13.

The uptick was driven by a 19-percent increase in South African lender’s shares from $100 per share (R1,390.5 per share) on April 13 to a record high of $119.14 per share (R1,651.91) at the close of trading on the Johannesburg Stock Exchange (JSE) on May 26.

The bank, which is one of the most reputable banking brands globally, according to the Brand Finance Banking 500 ranking, was founded in 1999 by Le Roux.

The South African’s net worth is around $1.2 billion, according to Forbes.

Capitec Bank has recently grown into one of South Africa’s leading lenders. Its robust offerings cover transactional banking services and loan products such as term loans, credit facilities and credit cards.

Despite a 27-percent decline in the bank’s headline earnings to $332 million (R4.6 billion) at the end of its 2021 accounting year, its shares have lately been on the rise. 

The decline was the result of a government-imposed COVID-19 lockdown in South Africa that disrupted critical banking operations during the first half of its accounting year.

At a record high price of $119.14 per share (R1,651.91 per share), the leading bank is valued at $13.8 billion (R191 billion) on the JSE.

According to data from the JSE, the market valuation makes the bank South Africa’s third-biggest banking group behind Standard Bank and FirstRand Limited, which maintains its position as the country’s largest lender by market capitalization on the local bourse.

Le Roux, a substantial shareholder in the bank with an ownership stake of about 11.5 percent, is one of the institution’s few insiders and directors who benefited from the surge in the bank’s shares.

The recent gains by Capitec have led the value of the billionaire’s 13,296,153 ordinary shares to climb from $1.33 billion (R18.5 billion) on April 13 to $1.58 billion (R22.0 billion) as of May 26. 

This puts Le Roux’s earnings at around $250 million (R3.5 billion), or 19 percent in 42 days.

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Led by South African mogul Neal Froneman, Sibanye-Stillwater slashes output target for U.S. mines

The news comes nearly two months after it suspended operations in Montana for seven weeks.



Neal Froneman.

Sibanye-Stillwater has reduced its output forecast this year for its palladium and platinum mines in Montana by more than 20 percent due to operational challenges caused by regional floods.

Sibanye-Stillwater is a multinational precious metal mining company based in South Africa. Under the leadership of CEO Neal Froneman, the company is involved in gold and base metals mining in South Africa and the Americas.

The South African mining company has reduced its output forecast for its palladium and platinum mines in Montana to 445,000 to 460,000 ounces in 2022 from 550,000 to 580,000 ounces earlier this year.

The decision to reduce its output forecast comes nearly two months after it suspended operations in Montana for seven weeks due to regional floods that disrupted operations on June 13.

Stillwater’s Montana mine accounts for ab08t 60 percent of the mined production from its U.S. PGM operations.

Aside from operational challenges, the decision to reduce its output forecast can be linked to expectations that the palladium market will swing into surplus by the middle of this decade, necessitating operational repositioning in the event of future price weakness.

“Hence, with our view of the palladium market plus the macroeconomic environment we are going to be dealing with going forward, we really need to reconsider what’s the best way of extracting value out of the assets,” Froneman said.

The company’s cautious approach may also result in the postponement of spending on its Blitz project in Montana, as Froneman stated: “It just doesn’t seem to make good or smart commercial sense to spend millions or billions on a capital project that will deliver into price weakness in the future.”

Shares in the mining firm closed trading on Friday at R40.68 ($2.52), 6.14-percent lower than their opening price on the local bourse, in response to the decision to cut its output forecast in the United States, while maintaining the output profile for its operations in South Africa.

Sibanye-Stillwater’s market cap is R115 billion ($7.1 billion) at current prices, while Froneman’s minority 0.074-percent stake in the company is valued at R85.1 million ($5.26 million).

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Led by South African Mouton family, PSG embarks on strategic restructuring

The South African Mouton family owns 24.5 percent of the company.



Piet Mouton.

PSG Group, a South African investment holding founded and led by the Mouton family, has begun restructuring its business.

At the investment holding’s general meeting on Aug. 10, more than 95 percent of shareholders voted in favor of the company’s strategic restructuring, unbundling its stakes in the listed subsidiaries that it owns and delisting from the Johannesburg Stock Exchange.

As part of the restructuring, the group will unbundle its stake in subsidiaries such as PSG Konsult, Curro, Kaap Agri, and CA&S, as well as its 25.1-percent stake in Stadio, a tertiary education company.

Shareholders will not receive unbundled shares in these subsidiaries, and there will be no scheme consideration in the group.

PSG Group is a South African investment holding company, with positions in banking, education, finance, and consumer goods.

The South African Mouton family owns 24.5 percent of the company, which includes stakes held by family members like Petrus and Johannes Mouton, who serve as executives in the group.

The restructuring comes after years of attempting to close the gap between the holding’s JSE share price and its intrinsic worth, which management believes is far greater than its local exchange valuation.

The average discount between PSG and the firms in which it holds stakes is more than 40 percent, which can be attributed to investors preferring to invest directly in operating companies rather than through a holding corporation.

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South African billionaire Johann Rupert-linked SEACOM partners with BT Group

Seacom is privately funded and 75 percent African-owned.



Johann Rupert. ©Billionaires.Africa

SEACOM has announced a strategic alliance with UK telecommunications service provider BT Group as it prepares to enter the African enterprise cybersecurity market.

SEACOM is a leading pan-African telecom services provider linked to South Africa’s richest man Johann Rupert.

The partnership aligns with SEACOM’s plans to expand its portfolio of services targeting African businesses. By leveraging BT Group’s infrastructure and expertise, SEACOM hopes to secure its own infrastructure and deliver new networking and security solutions to African businesses.

“With SEACOM’s global network and local presence and BT’s global reach and expertise, we will be able to deliver a comprehensive portfolio of cloud, security, and connectivity services that are reliable, scalable, and at the cutting-edge of the industry,” Oliver Fortuin, CEO of SEACOM, said.

BT Group, which protects some of the world’s largest organizations from cyber threats through a dedicated network of security operations centers around the world, announced that SEACOM customers will gain access to BT Group’s Cloud Security Incident Event Management (SIEM) platform.

The SIEM platform provides real-time visibility and monitoring across an organization’s entire IT environment, acting as an additional layer of security to SEACOM’s existing ICT solutions.

Seacom, which bills itself as Africa’s most extensive ICT infrastructure provider, is privately funded and 75-percent African-owned, with Rupert’s investment holding Remgro owning 30 percent of the company.

South African mining magnate Patrice Motsepe owns a 15-percent stake in the pan-African telecom services provider through his financial services conglomerate, Sanlam.

Jubilee Holdings, a Kenyan investment holding backed by Aga Khan IV (Shah Karim al-Husayni), increased its stake in SEACOM from 8.8 to 18.8 percent earlier this year after acquiring an additional 10-percent stake in the company.

According to Nizar Juma, chairman of Jubilee Holdings, the transaction will strengthen the company’s ability to diversify its investment priorities across major sectors of the economy.

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