Listings, asset swaps add life to a dull week on Diagonal Street
A COUPLE of large asset swaps and new listings featured in a dull week on the JSE. The all-share index edged a net six points higher to 7 022, although renewed Wall Street weakness on Friday hit the JSE in late trade.
Gold crept a few cents lower to below $347, and the R150 jumped to yield 15.28% against last week's 15.09%.
On Tuesday, 2.5-million Sasol changed hands with a foreign counterpart at an average price of R50.25. Sasol then picked up another 150c to R51.75. And on Thursday 37.8-million Iscor traded around 340c. Iscor eased 2c to 342c on the week.
There were other big local deals: 2-million Malbak worth R42.8-million, and 4.5-million Suncrush and 2.3-million on TemporaFriday. The market's view is that something's afoot in the latter stable as 37.5% of Tempora's assets are in Cadswep.
Gallagher Estates continued to be the punter's dream, up and down like a yo-yo. From 81c a week ago, it hit a high of 170c, then retreated to 130c. More than a quarter of the equity traded. Johnnic bought 34.9% of the company (price not disclosed) and an earlier standby offer at 60c now falls away.
There were several blundered deals in Servgro after it was partly unbundled. On Monday early birds offered R23 instead of the approximate balance of 734c Servgro is now worth.
The unbundled Avis made a reasonable debut, opening at 625c and climbing to 700c.
Tourvest also made its debut after a reverse take-over of the M&A shell. A handful traded at 250c, more at 200c and the price then settled around 160c - twice the price at which shares were privately placed.
Vestacor added 25c to 90c on news of its re-formation as an investment trust. Holders of 100 may subscribe for 205 at 35c, averaging the cost to 51c. But the non-availability of scrip means the stock cannot be sold short: Gentech and M&A exhibited the same distortion.
Educor shed 20c to 415c after a R108-million acquisition.
Baobab added 300c to R29 on good sentiment; its Mustek offer was 99.6% subscribed.
Holders of Saflife voted with their feet as the price lost another 325c to R20.50. Saflife, which is to buy 30% of JCI, is to raise R2.25-billion by issuing 273 shares per 100 at R20. It will also issue warrants 100 for 100 at 375c. These are like options and can be exercised at R20 within three years. They could trade around 800c with JCI at R42.
To follow its Saflife rights, Intrust is to raise R200-million by offering 26.2 shares per 100 at 780c. It closed at 760c.
Despite more than doubling its earnings, Marlin retreated from 81c to as low as 60c before bouncing back to 70c on big volume. Its quarrying is profitable, but it lost on beneficiation.
Primedia retreated 120c to R31 after buying 69% of Mailcom for R40-million. It warned of more negotiations.