Company news in brief

Apple finds quality problems in some iPhone X and MacBook models

Apple Inc said on Friday it had found some issues affecting some of its iPhone X and 13-inch MacBook Pro products and said the company would fix them free of charge.

The repair offers are the latest in a string of product quality problems over the past year even as Apple has raised prices for most of its laptops, tablets and phones to new heights. Its top-end iPhones now sell for as much as US$1 449 and its best iPad goes for as much as US$1 899.

Apple said displays on iPhone X, which came out in 2017 with a starting price of US$999, may experience touch issues due to a component failure, adding it would replace those parts for free. The company said it only affects the original iPhone X, which has been superseded by the iPhone XS and XR released this autumn.

-Nampa/Reuters

Tsogo Sun calls off casino and hotel sale

Tsogo Sun has called off its planned sale of seven casino and hotel businesses to Hospitality Property Fund due to a lack of support from shareholders, the South African company said on Monday.

“The sale of shares and subscription agreement has been terminated by agreement between Tsogo, Hospitality and the remaining parties to that agreement,” Tsogo said in a statement.

Hospitality said in July it would acquire the businesses in a shares and subscription agreement worth 23 billion rand (US$1.72 billion).

Tsogo said at the time the sale was part of plans to split into three separately listed divisions focused on property, gaming and hotel management.

-Nampa/Reuters

Vodacom H1 profit down

South African mobile phone group Vodacom reported a 13.5% fall in half-year profit on Monday, weighed down by the issuance of new shares to meet the black ownership target under domestic affirmative action rules.

Headline EPS, the main profit measure in South Africa, came in at 385 cents in the six months through the end of September, compared with 445 cents a year earlier.

Vodacom, a unit of Britain’s Vodafone, issued more than 114 million shares to black investors in July in a 16.4 billion rand deal to meet the ownership target under South African black economic empowerment rules.

The company, which competes with MTN Group, added 373 000 new users during the period, taking its subscriber base to 109 million, it said in results filing.

Vodacom raised dividend payout by 1.3% to 395 per share.

-Nampa/Reuters

Eskom warns of power cuts

South Africa’s cash-strapped power utility Eskom said on Monday the risk of nation-wide electricity outages had increased significantly due to a sharp fall in coal stockpiles at five of its power stations.

“The risk of load-shedding is there and its rising,” said Eskom spokesman Khulu Phasiwe.

“In total, we have 11 coal-fired power stations that have less than the required minimum amount of 20 days stockpile. Out of the 11, five of them have less than 10 days of coal stock and that is the challenge.”

-Nampa/Reuters

De Beers is said to make big cuts in low-end diamond prices

De Beers made steep cuts in the prices of low-quality stones at its sale this week, according to people familiar with the situation.

The world’s biggest producer reduced prices as much as 10% for low-quality stones, said the people, who asked not to be identified because the sales are private. It’s the latest sign that the bottom end of the market is in turmoil.

De Beers sells rough diamonds to trade buyers who cut, polish and manufacture them into the polished stones sold in jewelry stores. While there is some correlation between rough and polished prices, lower prices at a De Beers sale is unlikely to make a difference at the consumer level.

Even so, US retail jeweler shares moved on the news. Tiffany & Co declined as much as 3.6% and Signet Jewelers shares fell as much as 6.1%.

The business of low-end diamonds, which tend to be small and flawed, is struggling because of too much supply. Major cutting centers, such as Surat in India, have been squeezed by lower profit margins and the depreciation of the rupee.

There’s also concern that De Beers’s launch of man-made gems will add competition, especially at the bottom end of the market. But there’s no indication this has hurt demand so far.

De Beers is famous for its tight control over the diamond market. It sells gems at 10 sales a year in Botswana to a select group of customers. The buyers are expected to specify the number and type of diamonds they want, and then carry out the purchases at a price set by De Beers.

-Fin24

Court papers show Transnet executives 'colluded fraudulently'

Court papers filed by Transnet to recover R189 million in inflated payments from Gupta-linked Regiments Capital have revealed collusion by senior executives of the state-owned firm, in allowing the transaction.

Former Transnet CEO Siyabonga Gama, ex-chief financial officer Anoj Singh, Robert Ramosebudi who resigned in October as group treasurer and Garry Pita who vacated his chief financial officer position in April, are said to have “colluded fraudulently to cause Transnet to transfer to Regiments an over-payment of R151 million”.

-Fin24