COMPANY NEWS IN BRIEF

Sibanye could merge with Gold Fields, AngloGold

Sibanye-Stillwater should merge with peers Gold Fields and AngloGold Ashanti to create a gold mining leader which would beat Newmont to the top spot, the miner's CEO Neal Froneman told South African newspaper Business Day on Monday.

"I think there are three high quality SA companies that should be put together," the article quoted Froneman as saying. Consolidation was necessary if South Africa-domiciled companies were to compete at a global level, he said.

Sibanye, the world's biggest platinum producer, also produces gold from three mines in South Africa, and has a majority stake in gold miner DRDGOLD. Sibanye's own mines produced 809 877 ounces of gold in 2020.

"We've been saying for some time that we've been looking to expand our gold portfolio internationally," said Sibanye-Stillwater spokesman James Wellsted.

"To achieve proper diversification, we need to buy something of 1 million ounces plus," he said, declining to comment on AngloGold Ashanti or Gold Fields specifically. - Nampa/Reuters

Telecom regulator ICASA ordered by high court

South Africa's high court on Monday ordered telecoms regulator ICASA to halt an auction of radio frequency spectrum licences pending a hearing on contentions raised by operator Telkom and broadcaster e.tv.

The ruling is a setback for top mobile operators MTN and Vodacom which are seeking to expand their 4G capacity and to roll out 5G technology.

As part of the court order, the Independent Communications Authority of South Africa (ICASA) has been prohibited from assessing or making a final decision on any applications for the licensing of high-demand spectrum, court papers seen by Reuters show.

It also undermines South African President Cyril Ramaphosa's efforts to accelerate the economy by attracting new investment in the sector and creating jobs.

Operators have been waiting more than a decade for the ICASA to release new spectrum licences. Similar legal disputes halted the sale in 2016.- Nampa/Reuters

Heineken replaces chief financial officer

Heineken NV, the world's second largest beer maker, said on Monday it will replace its chief financial officer as it continues with an overhaul of its leadership and embarks on a major cost-saving plan.

Laurence Debroux, who took up her role in 2015, will step down after the Dutch brewer holds its annual shareholder meeting on April 22, and be succeeded on June 1 by Harold van den Broek, currently head of hygiene at Reckitt Benckiser.

The new chief financial officer will focus on returning operating profit margins to pre-pandemic levels by 2023. The company has already detailed its "Evergreen" plan to save 2 billion euros and cut about 8 000 jobs.

"He has led large scale business transformations, has decades of consumer goods experience and brings fresh external perspective," Heineken CEO Dolf van den Brink said of Van den Broek.

Heineken shares were 1.2% higher at 88.20 euros at 1100 GMT. They have been among the hardest hit in the drinks sector due to coronavirus restrictions in Europe, where Heineken is the biggest brewer, and production shutdowns in major markets Mexico and South Africa. - Nampa/Reuters

Direct Line annual profit drops

Direct Line posted a fall in full-year profit on Monday as weather-related costs weighed on its home insurance business, overshadowing a boost to its motor insurance line from fewer claims during coronavirus lockdowns in 2020.

Britain's largest motor insurer also announced a 100 million-pound (US$138.10 million) share buyback plan in addition to a 2.1% rise in its final dividend to 14.7 pence per share, encouraged by 2.2% growth in its own-brand policies to 7.5 million.

"The results have been affected by the usual variability around weather events but the addition of the factors surrounding Covid-19 make them more difficult to navigate than in previous years," Direct Line said.

Shares, which fell immediately after the opening bell, reversed course to stand 0.9% higher at 3.23 pounds by 0825 GMT.

Direct Line, whose brands include Churchill, Green Flag, Shotgun, Privilege and Darwinalso, said operating profit at its motor business jumped 20% to 363.5 million pounds for the 12 months ended Dec. 31 as virus-related restrictions kept people off the roads. - Nampa/Reuters

Jet parts supplier Senior expects tough 2021

Senior Plc warned this year would be as challenging as 2020 on Monday after the British aircraft parts supplier swung to an annual loss, hit by Covid-19-related disruptions to flight travel and Boeing's 737 MAX crisis.

The company, which supplies parts including airframes to plane makers, reported adjusted pre-tax loss of 6.2 million pounds (US$8.56 million), compared with a profit of 78.5 million pounds a year ago.

The latest restrictions to combat new, highly contagious virus variants could prolong a slump in air travel, which last year forced plane makers to cut production, dragging down suppliers such as Senior.

The company had already been restructuring its business by selling non-core businesses, cutting jobs, executive pay and even sought relaxations from lenders.

"The coronavirus pandemic had a profound effect on our markets and customers and although there are some signs of stabilisation, the impact will be with us for some time to come," said Chief Executive Officer David Squires.

Senior, which was reeling from the 737 MAX jet groundings from 2019, said it was encouraging that the MAX has now been re-certified and returned to service as production of the jet was at low level in 2020.- Nampa/Reuters