DRDGold CEO explains why the company decided to sell a stake to Sibanye-Stillwater for R1.3bn – an amount (and deal) some analysts are concerned about.
anyone can be a CEO; you can be the CEO of your corner shop if you want to,” says Niël Pretorius, who actually doesn’t sell vegetables or cigarettes, but happens to be the CEO of a surface gold retreatment company, DRDGold.
The reference is to criticism he received earlier this year for deciding to sell a stake in the business to Sibanye-Stillwater for R1.3bn.
Leon Esterhuizen, an analyst for Nedbank Securities, observed that the transaction, conducted on the basis of a share ratio, undervalued DRDGold. Within two years, Sibanye-Stillwater also has the option of taking its stake in DRDGold up to 50.1% from the current 38% holding at a 10% discount to the 30-day volume weighted average trading price of DRDGold shares.
This story is from the 16 August 2018 edition of Finweek English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the 16 August 2018 edition of Finweek English.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
