South African Companies Wil Benefot With Zimbabwe Recovery

SA Parents with written down Zimbabwe Associates

- - - - Other Options - - - - Quickshare Info.Latest NewsGraphsSet AlertsPrice DetailsStop LossDownload CSVResearch

JSE CODE	J203
Sharename	JSE-ALSH
The suspension of forex controls in Zimbabwe will inevitably lead to speculation as to the availability of discounted assets on the Zimbabwean stock exchange, and more particularly South African companies with substantially written down values. This was further highlighted by the announcement from Tongaat of the consolidation of Hippo Valley and Triangle Sugar in its financial statements in future. It would however appear that Tongaat is probably amongst the largest available. The table below demonstrates that this is so by a substantial factor in proportion to the South African market cap. This market cap does exclude the value of unlisted Triangle Sugar, which will be discussed in a subsequent note. Similarly, Nampak gives a single value for all Zimbabwean businesses on its book, listed and unlisted. Zimbabwe Listed Counter mkt cap $m SA Hold m shares Value $m SA co Value Rm % SA Cap Book Rm Diff Rm SA parent cap Rm CBZH 102.6 0 0 Absa 0.0 0.0% 0.0 0 74570 ASTRA IND 4.5 15.311 0.51 Barloworld 4.1 -4 CAIRNS 8.9 15.311 0.84 Barloworld 6.9 -7 TRACTIVE POWER 3.6 15.311 0.38 Barloworld 3.1 -3 subtotal 14.1 0.2% 0.0 -14 8528 AFDIS 24.5 54 14.58 Distellers 119.1 1.1% 0.0 -119 10859 EDGARS 10.0 112.1 4.04 Edcon 33.0 HWANGE many Hwange 0.0 0.0% 0 456 M & R 14.7 90.9 6.36 M & R 52.0 0.3% 0.0 -52 16751 HUNYANI 28.6 123.4 11.11 Nampak 90.7 0.9% 24.0 -67 9602 OLD MUTUAL many Old Mutual 0 54705 PPC many PPC 0 16999 DELTA 458.9 157.5 66.15 SABrews 540.4 0.2% 0.0 -540 281641 NICOZ 6.0 34.803 0.52 Santam 4.3 0.0% 0.0 -4 10443 NATFOOD 60.8 17.605 15.84 Tiger Brands 129.5 0.5% 31.8 -98 24769 HIPPO 154.4 97.1 77.68 Tongaat 634.6 7.5% 263.0 -372 8466 TRUWORTHS 4.1 127.41 1.40 Truworths 11.4 0.1% 0.0 -11 16282 There are South African businesses with large unlisted investments that need to be remembered. Examples of this include Impala Platinum, PPC and Pick n Pay. Impala Platinum did not necessarily impair ZimPlats aggressively. In the case of Pick n Pay and its 25% investment in TM Supermarkets (the biggest operating division of listed KMAL – Kingdom Meikles), the probable value is about $17m. This then leaves PPC with a very large cement factory in its books for next to nothing, but clearly the main value lies not so much in the asset, as in its capability to contribute earnings in future. It is operating far below capacity, as is most of the Zimbabwean economy.