Aspen Tumbles as Drugmaker Faces Pressure From Pricing Probe

Aspen Tumbles as Drugmaker Faces Pressure From Pricing Probe

JOHANNESBURG (Capital Markets in Africa) – Aspen Pharmacare Holdings Ltd. fell the most in more than a month after The Times of London reported that Africa’s biggest maker of generic drugs is in a dispute with Spanish authorities over proposed price increases on some cancer treatments. Employees at the Durban, South Africa-based company discussed destroying a stock of cancer drugs in Spain if a demand to raise prices by as much as 4,000 percent wasn’t met,…

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Sibanye to Raise $2 Billion in Equity, Debt for Stillwater Deal

Sibanye to Raise $2 Billion in Equity, Debt for Stillwater Deal

JOHANNESBURG (Capital Markets in Africa) – Sibanye Gold Limited plans to raise $1 billion from shareholders and a further $1 billion in debt, most likely bonds, to pay for the acquisition of Colorado-based Stillwater Mining Co. The funds will be raised by the middle of this year and will help repay a $2.65 billion bridge loan from a group of banks, Westonaria, South Africa-based Sibanye said in a statement Tuesday. The remainder of the loan will be repaid…

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Zambia Seeks IMF Deal of as Much as $1.6 Billion This Month

Zambia Seeks IMF Deal of as Much as $1.6 Billion This Month

LUSAKA (Capital Markets in Africa) – Zambia, Africa’s second-largest copper producer, plans to reach an aid deal for as much as $1.6 billion with the International Monetary Fund by the end of April, Finance Minister Felix Mutati said. Bond yields fell. “At the moment we know that we can get up to $1.6 billion — if you ask me, I’d go for the maximum,” he said in an interview Monday in the capital, Lusaka. “Hopefully the program…

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South Africa’s Shoprite looks beyond Africa to Eastern Europe

South Africa’s Shoprite looks beyond Africa to Eastern Europe

CAPE TOWN (Capital Markets in Africa) – Africa’s biggest grocery retailer Shoprite is considering a push into Eastern Europe, where it hopes to use knowledge gleaned from former suitor Steinhoff International, its new CEO told Reuters. The move signals a change in strategy for Shoprite under Chief Executive Pieter Engelbrecht, 47, as sovereign rating downgrades and a weak economy cloud prospects at home. It also leads it down a competitive path crowded with established retail giants…

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South Africa’s credit downgrades rule out repo rate cuts

South Africa’s credit downgrades rule out repo rate cuts

JOHANNESBURG (Capital Markets in Africa) – South Africa’s debt downgrade to junk status and the finance minister’s recent dismissal mean interest rates will be on hold until 2020 at least, a Reuters poll found on Wednesday. Economists in the poll, taken just a week after Fitch Ratings Agency and Standard & Poor’s downgraded South Africa to “junk”, pushed out rate cuts, ruled them out altogether or considered the possibility of hikes. But the medians from the…

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South Africa’s bourse to review trades around Gordhan’s recall

South Africa’s bourse to review trades around Gordhan’s recall

JOHANNESBURG (Capital Markets in Africa) – South Africa’s bourse will investigate an increase in the trading of certain securities in the hours before former finance minister Pravin Gordhan was recalled from an international investor roadshow, BusinessDay newspaper reported on Monday. On March 27, news broke that President Jacob Zuma had ordered Gordhan to return immediately from a trip to Britain and the United States. Gordhan was later dismissed in a cabinet reshuffle. The newspaper reported…

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South Africa’s President Zuma Sacked Finance Minister Gordan: Market Reactions

South Africa’s President Zuma Sacked Finance Minister Gordan: Market Reactions

LAGOS (Capital Markets in Africa) – South African CEOs see severe consequences after the cabinet reshuffle. South African President Jacob Zuma’s decision to dismiss Finance Minister Pravin Gordhan has severe consequences for the economy and is a setback to the work done to avoid a credit rating downgrade, a group of business leaders said on Friday. “This decision and the manner in which it was taken is likely to cause severe damage to an economy that is in dire need of growth…

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