21 minutes | May 26, 2021

SAB Zenzele Kabili (#448)

Simon Shares
  • Somebody buying Metrofile (JSE code: MFL). Started late on Tuesday, sending it almost 13% on the day and holding Wednesday.
  • Mediclinic (JSE code: MEI) paid £432m for 29.9% of Spire Healthcare (LSE code: SPI) in 2015. They're now supporting a buyout from a third party valuing that stake at £287.8m.
  • Healthcare stocks earnings remain under pressure as elective surgery remains limited.
  • Afrimat (JSE code: AFT) to acquire R650m manganese mining rights.
  • Gold above US$1,900 and even with Rand strength (currently 13.85) we're finally seeing gold in ZAR moving a little higher.
  • No change to the repo rate at last weeks MPC meeting. All the excitement was that the next move will be up, but we knew that. Of more interest is that the govoner talks bout 4.5% rather than the 3%-6% range. He always has but it seems MPC will based rate decisions on that 4.5%.

* I hold ungeared positions.

Upcoming events; SAB Zenzele Kabili

Listing on the BEE board of the JSE on 28 May.

No IPO process ahead of that.

R40 listing price.

But trades subject to supply / demand.

I would expect it to boom initially then settle around R40.

No lock-in period, so you can buy / sell as you wish.

This is very much a long-term investment.

Will be ownership of global AB Inbev (JSE code: ANH) shares worth R5.4billion.

AB Inbev market cap is around R1.8trillion. So a small slice of the entire group of less than 1%.

  • Important, you are not just getting SAB, it is the entire global group.

There is debt included, geared about 55% at 70% of prime payable over ten years.

  • Another reason to view it as long-term.
  • 75% of dividends will be used to settle the debt.

This is a long-term investment option and NOT a get rich quick scheme.

We have also seen some BEE schemes fail spectacularly.

Not all stockbrokers are enabling trading in the shares. SAB have a trading desk, call them on 0861 900 903.

Only BEE qualifying investors can buy the shares.

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