PHANTOM SHARES: The Finance Ghost: Tongaat short of cash while Telkom spends it

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With the share price having lost more than half its value so far this year and a spectacular 98% of its value over five years, there’s not much for Tongaat Hulett shareholders to smile about.

Tongaat Hulett’s plan to recapitalise the business was based on Magister Investments underwriting a rights offer. A prerequisite for this support was a waiver of a mandatory offer from other shareholders.

The Takeover Regulation Panel ruled that the waiver was a nullity due to third-party share acquisitions. Although Magister hasn’t formally run away, this is clearly a huge setback to the plan. It was a mixed week for Sibanye-Stillwater, with further drops in the share price taking the year-to-date decrease to 11.4%.

Just as things were looking up, the company announced that flooding had caused a halt to its platinum group metals operations in Montana. This is literally the Stillwater part of the business, which means the headlines just write themselves.

 

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