Heineken and Vumatel parent deal plunges Remgro earnings severely

The investment holding company is smarting from Heineken's poor showing in SA and a disappointing contribution from Community Investment Ventures Holdings, the parent of Vumatel and Dark Fibre Africa, which has reported a 96.7% plunge in headline earnings. This has eroded Remgro's interim headline earnings by 39%.

Vodacom’s plans to acquire up to 40% of CIVH’s newly created wholly owned subsidiary, Maziv, which holds its current interests in Vumatel and DFA, are in jeopardy after the Competition Commission recommended in August 2023 that the Tribunal prohibits the proposed transaction. The Tribunal is set to hear the matter in May.

The group is hopeful that the proposed transaction will be given the green light, Remgro CEO Jannie Durand said: “We, together with the CIVH and Vodacom management teams, fundamentally believe in the value of this transaction; the benefits for all stakeholders that stand to be unlocked through its successful completion.

“As a result of these challenges the first half-year period of trading for Heineken Beverages is not deemed to be an accurate reflection of the long-term prospects of the business — meaningful insights from the results will only be forthcoming following a longer trading period for the combined business,” the group insisted.Remgro’s intrinsic net asset value per share — a measure of what an asset is worth — as at 31 December 2023 had declined by 4.6% to R236.95 since 30 June 2023.

España Últimas Noticias, España Titulares

Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.

Massive earnings hit for Vumatel parent companyVumatel and DFA parent CIVH contributed R6 million to Remgro’s headline earnings per share between July and December 2023, down 96.7% from the R184 million reported over the same period in 2022.
Fuente: mybroadband - 🏆 11. / 67 Leer más »

Johann Rupert's Remgro reports earnings slump amid corporate action, falling beer salesJohann Rupert's Remgro reports earnings slump amid corporate action, falling beer sales
Fuente: News24 - 🏆 4. / 80 Leer más »

Remgro maintains dividend, despite sharp earnings declineGlobal and local headwinds batter interim results, but the group believes 'the operating environment is showing signs of moderation'.
Fuente: Moneyweb - 🏆 5. / 77 Leer más »

Remgro positive about Vodacom-Maziv merger dealThe group remains intensely focused on achieving a favourable outcome on the proposed transaction between Vodacom and CIVH.
Fuente: ITWeb - 🏆 45. / 51 Leer más »