🔒 Flash Briefing: Israelis want to buy SA’s Clover; ESG gathers momentum; Impala back in black

By Alec Hogg

In today’s global business headlines:

• Further evidence of the rapidly changing political world this morning comes from El Salvador where a former advertising executive swept to victory in the first round of the presidential election. Nayib Bukele, 37, who stood on an anti-corruption ticket, overturned three decades of two-party rule with 54% of the votes, more than 20 points clear of his nearest challenger, the head of a right-wing coalition. Further south, after another weekend of mass protests in Venezuela, an air force general has become the most senior military chief yet to abandon president Nicolás Maduro and to throw his support behind the 35-year-old head of the National Assembly, Juan Guaidó. Last month a clutch of countries, including the US, officially recognised Guaidó as Venezuela’s real leader. The EU has given Maduro until later this week to call an election or face further action.

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• Momentum continues to grow for ESG factors to receive more attention from public companies. The Financial Times of London reports that Britain’s auditing watchdog is poised to introduce explicit reference to Environmental, Social and Governance criteria in company financial reports. And at a conference in London the Archbishop of Canterbury predicted enormous changes in asset management as millennials accumulate more wealth and impose their demands that companies avoid doing harm. A report issued this morning by Share Action, a responsible investment group, says pressure is rising on bond investors to follow those who invest in equities and demand higher ESG standards from companies. In Davos last month Investec joint CEO Hendrik du Toit called on public companies to have at a board member directly responsible for ESG.
• In South African related news, a consortium led by Israeli group Central Bottling Company has made a R4.8bn offer to acquire control of South Africa’s dominant dairy business Clover. The offer, at R25 a share, was tabled this morning, with CBC holding 60% of a consortium that includes Black-owned Brimstone Investment, with 15%. Clover management will be incentivised through a 6% shareholding. The offer price is a 77% premium to the price at which the shares traded before Clover issued a cautionary on October 18^th, relating to the deal. The consortium has received approval from shareholders owning 49% of Clover’s shares. If successful, it intends delisting the company from the JSE.
• Also from South Africa, one time JSE heavyweight Impala Platinum is clawing its way back to health with news this morning that it has rebounded back into profit. The group, which at 1.6m ounces a year is the world’s second largest producer of platinum, told shareholders this morning that it will deliver headline earnings of at least R2.1bn for the six months to end December, compared with a loss of R150m in the comparative period during 2017. The turnaround is a direct consequence of a 10% production increase and an improved rand price for its basket of PGMs.