Newsletter No. 10 / 26 March 2021
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SA to restrict imports, offer extra sops to buy indigenous goods
South Africa will clamp down on illegal import of goods and offer additional incentives to support buying of indigenous products, President Cyril Ramaphosa recently told the Proudly South African Summit and Expo 2021. Apart from its own procurement commitments, the government is working to lower entry barriers to make it easier for businesses to establish and grow, he said.
To reduce import dependence, small business local procurement thresholds for the public sector will be introduced, the president said.
The clothing, textile, footwear and leather sector has embraced the localisation drive, pledging half a billion rand to the expansion of local manufacturing sites.
“We must ask every South African to take a conscious decision to buy local goods. Our message must be that wherever you may be in the country, be Proudly South African”, said Ramaphosa.
“Wear local, travel local, eat local, watch local content, read local authors, support local music, and use local raw materials in your businesses. Proudly South African must move beyond being a campaign,” he added. F2F
Sportswear retailer Mr Price Sport signs multi-year deal with SASCOC
Pic: Team South Africa
Iconic sportswear retailer, Mr Price Sport, has signed a multi-year, multi-games partnership with the South African Sports Confederation and Olympic Committee (SASCOC), which will make Mr Price Sport the official apparel sponsor of Team South Africa. SASCOC is the National Olympic Committee and National Paralympic Committee for South Africa.
The four-year deal encompasses the Tokyo 2020 Olympic and Paralympic Games, Birmingham 2022 Commonwealth Games, the 2023 Africa Games in Accra and the 2024 Summer Olympic and Paralympic Games in Paris, according to SASCOC.
Beginning with the Tokyo 2020 Olympic and Paralympic Games, for the first-time, the South African Olympic and Paralympic athletes will be wearing locally developed athletic apparel at the Olympics’ and Paralympics opening ceremony, as well as on the podium, SASCOC said.
Mr Price Sport is no stranger to developing activewear for multiple sport types and the Team South Africa range covers a host of disciplines. From the Comrades Marathon to the Shark Tank, Mr Price Sport has become a household brand kitting out South Africa’s best athletes in Maxed Elite apparel. The Mr Price Sport team worked closely with local designers, with expert advice from SASCOC and the athletes, ultimately creating innovative and iconic activewear for Team South Africa. Additionally, they will be making key items available in stores, allowing fans to wear the same kit worn by their heroes as they enter the stadium in Tokyo, SASCOC said in a media statement.
“It has always been a goal of SASCOC and Team South Africa to partner with a proudly South African brand. We are excited and thrilled to be partnering with Mr Price Sport, this is a momentous occasion in which Team South Africa will participate in the world’s biggest events, kitted and dressed by a South African brand, a first of its kind,” president of SASCOC, Barry Hendricks said in a statement.
“We are very excited about this new partnership and it is an absolute honour to be kitting out Team South Africa. Equipping South Africa’s foremost, elite athletes in one of the country’s most accessible brands serves as a great inspiration for all. Having young, aspiring Olympians and Paralympians see their sporting heroes in a brand they know and love can only serve to inspire,” managing director of Mr Price Sport, Roger Maingard said.
The Olympic Games is the world’s most internationally represented multi-sport event, with 35 sport types and over 200 nations taking part. The Paralympic Games are the largest multi-coded event for athletes with disabilities covering 22 sport types and over 96 nations taking part. These games are typically hosted every four years, but were delayed in 2020 due to the COVID-19 pandemic. F2F
HomeChoice final results December 2020
Revenue for the year fell 6% to R3.3 million (R3.5 billion) whilst operating profit took a 60.2% knock to R270 million (R679 million). Profit and total comprehensive income for the year came to R167 million (R455 million). In addition, headline earnings per share dipped to 164.2 (436.0).
Our customers have shown her resilience during this period and we will continue to pursue our strategy to provide them with exciting products, new merchandise categories and providing loans to stably employed customers.
We will drive the growth momentum in Financial Services and “course correct” the Retail business by balancing product and margin strategy and right-sizing the cost base.
We will continue to accelerate our digital transformation and aggressively use digital marketing and social media to capture market share. Financial Services will expand the MobiMoney wallet and payment functionality.
We believe that the group has a defensive business model and is well positioned for growth with a strong cash position to support it.
Woolies – change in external auditor
Shareholders and Bondholders are advised that, following the conclusion of a tender process, the Audit Committee has recommended, and the Board has endorsed, the proposed appointment of KPMG Inc. to succeed Ernst & Young Inc. (‘EY’) as the Group’s external auditor, effective for the 52-week financial period ending 26 June 2022.
The proposed appointment will be put to shareholders at the Annual General Meeting of the Company, scheduled for November 2021 (‘2021 AGM’).
The change in external auditor is due to the Board’s decision to adopt mandatory audit firm rotation ahead of the prescribed date. EY will continue to audit the Company’s accounts in respect of the 52-week financial period ending 27 June 2021 and EY’s term as external auditor will end on conclusion of the 2021 AGM.
EY will have served as the Company’s external auditor for a period of 89 years. The Board and Audit Committee thank EY for their contributions over the years and look forward to working with KPMG Inc.
Rex True – trading statement
Shareholders are accordingly advised that:
Rex Trueform’s earnings per share (“EPS”) is expected to decrease 94.1%, from earnings of 82.4 cents per share reported by Rex Trueform for the six months ended 31 December 2019 to earnings of 4.9 cents per share for the six months ended 31 December 2020; and
Rex Trueform’s headline earnings per share (“HEPS”) will decrease by 84.0%, from headline earnings of 82.4 cents per share reported by Rex Trueform for the six months ended 31 December 2019 to headline earnings of 13.2 cents per share for the six months ended 31 December 2020.
The interim financial results for the six months ended 31 December 2020 are anticipated to be released on or about 26 March 2021.
Pepkor – appointment of group company secretary
The board of directors of the Company (“the Board”) advised that Mr Masood Allie has been appointed as the Group Company Secretary of Pepkor with effect from 21 June 2021 (“Date of Appointment”).
On the Date of Appointment, Pepkor (Pty) Ltd. will resign as Company Secretary of Pepkor.
The reason for the appointment and the resignation of Pepkor (Pty) Ltd. is that the Board considers it more appropriate that an individual holds the position of Company Secretary rather than a juristic person that is a subsidiary of Pepkor.
Steinhoff – notice of AGM
Shareholders are referred to the notice of Annual General Meeting of Steinhoff International Holdings N.V. (the “Company”), with corporate seat in Amsterdam, the Netherlands, to be held on Friday, 30 April 2021, at 13:00 CET at Muziekgebouw aan ’t IJ, Piet Heinkade 1, 1019 BR Amsterdam, the Netherlands, and which will be accessible via webcast on the Company’s website (www.steinhoffinternational.com) (the “AGM”), as posted on the Company’s website today (the “Notice”). The Company accommodates its shareholders (the “Shareholders”) in attending the AGM virtually through electronic means, without the need to physically attend the AGM. Participating virtually in the AGM is subject to the Company’s hybrid meeting policy which is published on the Company’s website (www.steinhoffinternational.com) simultaneously with the Notice (the “Hybrid Meeting Policy”).
The health and safety of the Company’s employees, Shareholders and other stakeholders is a key priority for the Company. To limit health and safety risks in light of the COVID-19 pandemic, the management board of the Company (the “Management Board”) recommends that the Shareholders participate in the AGM by proxy or virtually only, without physically attending the AGM, subject to the Hybrid Meeting Policy.
The Management Board may take further precautionary measures to safeguard the health and safety of its employees and the participants of the AGM. These measures include, subject to an extension of the emergency legislation allowing fully virtual shareholders’ meetings, converting the AGM into a fully virtual AGM. Shareholders and other persons with meeting rights will in such case not be able to physically attend the AGM and can only cast their votes if voting rights accrue by way of electronic means during the virtual AGM or by granting a proxy.
Developments in connection with the COVID-19 pandemic will be closely monitored and the Company will publish updates, and health and safety guidelines for attending the AGM on its website (www.steinhoffinternational.com) when appropriate. Shareholders should therefore check the Company’s website (www.steinhoffinternational.com) on a regular basis for any updates. The Management Board recommends that the Shareholders participate in the AGM by proxy or virtually only, and if a fully virtual AGM is deemed appropriate by the Management Board, its decision thereto and the relevant information and procedures will be published in the same manner as the Notice prior to the AGM in a timely fashion.
Shareholders and other persons with meeting rights are invited to submit any questions relating to any of the agenda items prior to the AGM in the English language by e-mail to firstname.lastname@example.org by Tuesday, 27 April 2021, at 13:00 CET at the latest. These questions will be answered during the AGM and shall be published on the Company’s website (www.steinhoffinternational.com) after the AGM. Further questions can be asked during the AGM in the physical meeting (if physical attendance is possible) and by submitting such questions in the English language through the digital voting platform. In the event of a fully virtual AGM, the chairperson of the AGM may determine that, in the interest of the order of business of the meeting, it can reasonably not be required to answer one or more specific further questions in the light of the circumstances at the time of the AGM.
The date on which holders of Shares listed on the JSE Limited must be recorded as such in the register of shareholders of the Company to be eligible to attend and vote at the AGM is the Record Date, with the last day of trade on JSE Limited being Monday, 29 March 2021, as the Record Date falls on a public holiday in South Africa. The Company has a primary listing on the Frankfurt Stock Exchange and a secondary listing on the JSE Limited.
Steinhoff – update on global settlement progress
Steinhoff announced the following update on implementation of its proposal to resolve the various multi-jurisdictional legacy litigations and claims against the Steinhoff Group, including those against former South African holding company Steinhoff International Holdings (Pty) Ltd. (“SIHPL”).
Update on D&O Insurers and certain former D&Os support Steinhoff Global Settlement
In addition, SIHNV and SIHPL announce that they have reached an agreement with certain insurance companies underwriting Steinhoff’s (primary and excess) Directors and Officers insurance policy (the “D&O Insurers”) and certain former directors and officers who have worked for or been associated with a Steinhoff Group company (the “Settling D&Os”). The Settling D&Os include: S. Booysen, D. Brink, C. Daun, H. Ferreira, T. Guibert, D. Konar, A. Krüger- Steinhoff, (heirs of) M. Lategan, J. Mouton, J. Nel, H. Odendaal, D. Schreiber, F. Sonn, H. Sonn, B. Steinhoff, P. van den Bosch, D. van der Merwe, J. van Zyl, C. Wiese and J. Wiese. For the avoidance of doubt, the Settling D&Os do not include M. Jooste, B. La Grange, S. Grobler and S. Schmidt.
As a result, the previously announced bilateral agreement with Deloitte Accountants B.V. and Deloitte & Touche South Africa (together: “Deloitte”) dated 14 February 2021, will be replaced by a comprehensive Steinhoff Settlement Support Agreement (“SSSA”) entered into by inter alia SIHNV, SIHPL, Deloitte, the D&O Insurers and the Settling D&Os.
Deloitte, the D&O Insurers and the Settling D&Os will support the proposed Steinhoff global settlement originally announced on 27 July 2020 and as subsequently revised.
Deloitte, the D&O Insurers and the Settling D&Os do not in any way admit liability for the losses incurred by
Steinhoff and its stakeholders as a result of the accounting irregularities at Steinhoff.
Provided that Steinhoff successfully completes the Dutch law suspension of payments process commenced on 15 February 2021 (“Dutch SoP”) and the South African statutory section 155 scheme (“S155 Scheme”) and certain other conditions are fulfilled, the D&O Insurers and the Settling D&Os have agreed to offer an amount of up to EUR 55.5 million for distribution to market purchase claimants in exchange for certain waivers and releases.
Provided that Steinhoff successfully completes the Dutch SoP and the S155 Scheme and certain other conditions are fulfilled, the D&O Insurers and the Settling D&Os have further agreed to offer an amount of up to EUR 15 million for distribution to certain contractual claimants.
Deloitte and D&O Insurers’ agreement with ACGs
Both the Deloitte and D&O Insurers offers to MPC Claimants will become effective if 5 out of 6 ACGs accept or if Deloitte and the D&O Insurers otherwise agree.
Pursuant to arrangements between each of Deloitte and the D&O Insurers and the ACGs, and provided that Steinhoff successfully completes the Dutch SoP and the S155 Scheme and certain other conditions are fulfilled, the ACGs that accept the respective offers made by Deloitte and the D&O Insurers will collectively be entitled to receive cost compensation of up to EUR 6.5 million (as part of the agreement with Deloitte) and up to a further EUR 6.5 million (as part of the agreement with D&O Insurers).
As previously announced on the Steinhoff website (www.steinhoffinternational.com), provided that Steinhoff successfully completes the Dutch SoP and the S155 Scheme and certain other conditions are fulfilled, Steinhoff Africa Holdings (Pty) Ltd. will separately make available to the ACGs that support the Steinhoff global settlement offer a collective amount of up to EUR 30 million as cost compensation.
Steinhoff – disclosure of inside information
Steinhoff International Holdings N.V. (“SIHNV” or the “Company”, together with its subsidiaries, “Steinhoff” or the “Steinhoff Group”) announces the following update on implementation of its proposal to resolve the various multi-jurisdictional legacy litigations and claims against the Steinhoff Group, including those against former South African holding company Steinhoff International Holdings (Pty) Ltd. (“SIHPL”).
Steinhoff announced on or about 14 February 2021 that it had entered into a conditional agreement with Conservatorium Holdings LLC (“Conservatorium”) and entities connected to Dr Christo Wiese (“CW Entities”) to settle the outstanding disputes between and among Steinhoff, Conservatorium and the CW Entities. Steinhoff today announces that such agreement has become unconditional upon Steinhoff and the CW Entities entering into agreements under which those entities and their affiliates will support the Steinhoff global settlement.
The new agreements with the CW Entities include the following:
Did you know……..
“It is estimated that around the world, about 107 billion units of apparel and 14.5 billion pairs of shoes were purchased in 2016” – (Common Objective, 2018)
In the end, it all comes to the way we treat our clothes. Buying new clothes without thinking twice is not only budget-unfriendly, but also unsustainable. It is our duty as consumers to look a little deeper to ensure that our hard-earned cash is going to companies we want to support.
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