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From Creamer Media in Johannesburg, I'm Shannon O'Donnell.
Making headlines today:
Eskom CEO Jacob Maroga acknowledged on Tuesday that the resignation of financial director Bongani Nqwababa and human resources head Mpho Letlape was a "big blow" to the organisation. But, he gave an assurance during an interview with Engineering News Online that urgent processes were being launched to secure capable replacements.
Maroga said that there was little question that Nqwababa's decision to opt for the financial director's position at Anglo Platinum was a "big issue". This was particularly in the context of Eskom's plans to raise up to R150-billion on the local and international capital markets.
However, he said that Nqwababa would stay on until the end of the year and would still be at Eskom when it began raising its first dollar-denominated bond following the decision by rating agency Moody's to downgrade the utility. The other rating agencies that monitor Eskom were expected to make their pronouncements soon.
Petrochemicals giant Sasol will welcome about 300 000 ordinary South Africans as shareholders of the company on September 8. This is South Africa's largest-ever broad-based black economic-empowerment deal, worth some R24-billion. The new shareholders will hold a 4,5% stake in the group.
Initially the company expected about 200 000 South Africans to take advantage of the deal. CEO Pat Davies said the company has been overwhelmed and humbled by the response from the public. He said it had exceeded its expectations in terms of interest, and subscription.
Both options of the BEE deal were extremely sought after, with the funded option more than 300% oversubscribed, and the cash offer 13% oversubscribed.
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Platinum producer Lonmin on Tuesday rejected the $10-billion hostile offer from diversified miner Xstrata. Lonmin said it undervalued the company and that shareholders shouldn't take any action.
The £33-a-share offer was made at a time when Lonmin's share price was trading at a substantial discount to its five-year average enterprise value. A report entitled Reject Xstrata's Approach stated that the bid was made when production was lower, and at a "challenging" time for platinum group-metals producers.
Chairperson Sir John Craven said that the preconditional offer failed to recognise Lonmin's growth potential.
Also making headlines:
Hugo Chavez says Venezuela should supply oil to South Africa New vehicle sales are down 30% year-on-year ArcelorMittal South Africa announces its first price cut for the year, but the base remains high The Australian state considers the possible ban on uranium mining Wesizwe Platinum gains total control of its flagship South African platinum project And, NovaGold sells its stake in the Alaska project and considers 'strategic alternatives'
In political news:
Taro Aso leads the race to be Japan's next Prime Minister Condoleezza Rice is to visit Libya, which is the first such US trip in 55 years A summit will be convened to look at the Merafong issue And, the African Union wants a Zimbabwe crisis deal now
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