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 The Sharenet Daily 
Tuesday, 18 June 2013 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

Brait ? A diamond in the rough?

Brait is an investment holding company with its primary listing on the Luxembourg Stock Exchange and a secondary listing on the JSE. It differs from most other well known holding companies in SA in that the majority of its investments are in unlisted businesses geared to emerging markets.

Brait started off as a private equity fund manager in 1992 by raising capital for its first fund, Brait I. Three further private equity funds followed, with Brait III and Brait IV each being South Africa’s largest independently managed private equity funds at the time of launch. The company’s first three funds are now fully realised, and achieved an exceptional gross rate of return in excess of 30% pa.

In July 2011, Brait successfully changed its business model from a private equity fund manager to an investment holding company through a R 6.4bn equity capital raising, which together with the debt component of R 2.2bn was considered the largest capital raising in Africa at the time.

Underlying Investments

As part of its investment criteria, Brait seeks underlying investments that are up to R4bn in size, offer a targeted internal rate of return in excess of 25%, demonstrate growth in earnings and/or strong cash flow generation, and are leaders in their respective market segments.

The majority of Brait’s underlying investments are concentrated in Pepkor (61%), Premier Foods (10%) and Iceland Foods (10%). Further investments include the Brait IV private equity fund (4%), with holdings in Consol and Primedia, and DGB (2%), a producer and exporter of local wine with the brands Douglas Green and Boschendal in its stable.

Pepkor, headquartered in Cape Town, was founded in 1965 and now operates in 14 countries across 3 continents. It is SA’s leading retailer operating in the low income market, and sells everything from clothing and footwear (Pep, Ackermans, JayJays, Shoe City) to house wares (Pep Home) and cellular products (Pep Cell). Pepkor trades in 11 African countries, and also expanded to Australia with the acquisition of Best & Less in 1998 and to Poland and Slovakia via the brand Pepco.

Premier Foods is a key staple foods producer in SA, operating 11 bakeries, 5 wheat mills and 16 distribution depots nationwide. Some of its flagship brands include Blue Ribbon Bread, Snowflake Flour and Iwisa Super Maize Meal. Premier Foods has a significant exposure to the informal market, which accounts for over 60% of bread sales in SA, through its well-priced flour products. Brait expects the company to drive growth through optimising its existing milling and baking operations in SA and also expanding into the rest of Africa.

Iceland Foods is a UK based national food retailer that focuses on frozen foods but also offers regular groceries and fresh fruit and veg. The company was founded in 1970 by current CEO Malcolm Walker, who was forced to leave Iceland in 2001. The company floundered in his absence, and Walker made his return in 2005 as a member of the consortium that took the company into private ownership. Since Walker’s return sales have grown by more than 50%, profitability has been fully restored and Iceland now has a 13% share of the UK frozen foods market. The company has an extensive footprint across the UK, has over 24 000 employees and is known as an innovative and rewarding company to work for.

Financial Results

Brait has recently released its annual results for the financial year ended 31 March 2013, and investors will be more than pleased with the strong growth figures. Net Asset Value (NAV) per share increased by 29% from R 20.59 to R 26.64, well in excess of Brait’s targeted growth of 15% per annum. Underlying holdings are valued by applying specific multiples to the earnings received from each investment. Pepkor was valued on a 8.0x multiple, and Premier Foods and Iceland Foods on a 6.5x multiple. These multiples have not increased from the previous financial year, indicating that the growth in NAV is a direct result of the growth in earnings from the underlying companies. It can also be noted that these multiples are vey low in comparison with listed competitors in these sectors, resulting in quite conservative valuations for these investments.

The breakdown and quarterly growth of the NAV per share is as below:

Further highlights include an increase in Normalised Headline Earnings per Share (HEPS) of 34% to R 5.79 per share and the proposal of a bonus share issue of 26.64 cents per share, an increase of 29% on the previous year.

Brait has also experienced R 274m in cash inflows from its investment portfolio in the financial year, including a R 128m Pepkor dividend and R 118m from realisations within the private equity fund and smaller investments.

A further R 1.5bn of capital was raised in August 2012 from the issue of perpetual preference shares, and Brait now has cash and facilities of R 2.7bn available for new investments should opportunities arise.

A unique opportunity

Brait offers investors access to a unique portfolio of unlisted investments characterised by its exposure to emerging markets and lower income groups. The underlying investment portfolio is defensive in nature, cash-generative, and is ever diversifying in terms of geographic and sectoral exposure.

We believe that Brait’s investments can deliver sustainable growth in challenging market conditions, and it is included at a 3.4% holding in the Seed Equity Fund as part of both the momentum and value portfolios.

Kind regards,

Cor van Deventer

021 914 4966

Tue, 18 Jun 2013
Top News
Africa's largest lender, Standard Bank, said on Tuesday it would lay off 148 people in its information technology operations to reduce duplication of roles.  Full story

Employment in South Africa's non-agriculture sector edged up 0.1 percent in the first quarter of 2013 compared with the previous three months, although the key mining and manufacturing sectors shed jobs, Statistics South Africa said on Tuesday.  Full story
Russian President Vladimir Putin faced growing isolation on the second day of a G8 summit on Tuesday as world leaders lined up to pressure him into toning down his support for Syrian President Bashar al-Assad.  Full story
A lone, silent vigil by a man in Istanbul inspired copycat protests on Tuesday, as police detained dozens of people across Turkey in an operation linked to three weeks of often violent demonstrations against Prime Minister Tayyip Erdogan.  Full story
Two coordinated suicide bombings at a Shi'ite Muslim mosque in Baghdad killed at least 29 worshippers at noon prayers on Tuesday, medics said.  Full story
U.S. stocks climbed on Tuesday, led by growth-oriented sectors, as investors took an optimistic view that the Federal Reserve will temper recent statements pointing. . .  Full story
Gold fell more than 1 percent on Tuesday as U.S. equities rallied and bullion buyers took to the sidelines before the conclusion of. . .  Full story
U.S. equities pushed higher on Tuesday as investors grew more confident that the Federal Reserve would temper its recent statements on the future reduction. . .  Full story
European equities steadied on Tuesday, with investors unwilling to make large bets until there is clarity on the strength of the domestic economy. . .  Full story

Britain's blue chip share index rose on Tuesday, as traders bought up beaten-down financial heavyweights in a cautious session ahead of a policy. . .  Full story
U.S. stocks edged higher at the open on Tuesday ahead of the start of a highly-anticipated Federal Reserve meeting.. . .  Full story
Banks led gains in European shares on Tuesday with HSBC and Standard Chartered boosted by a positive Citigroup note, while speculation over monetary. . .  Full story
Hong Kong shares ended little changed on Tuesday, with investors selling recent outperformers and turnover low as global markets braced for this week's. . .  Full story
SA Business
South Africa's rand was softer against the dollar and government bonds also weakened as Johannesburg trade resumed on Tuesday after a long holiday weekend.. . .  Full story

South Africa's Harmony Gold said on Tuesday it expected to write down a portion of the carrying value of its Hidden Valley mine in Papua New Guinea because of lower gold. . .  Full story
German sportswear maker Adidas AG forecast record sales for its soccer business in 2014, aiming to retain market leadership in the sport ahead of U.S. rival Nike Inc in a soccer. . .  Full story
South Africa's Treasury sold a total 2.35 billion rand of its 2026, 2031, and 2036 government bonds on Tuesday.. . .  Full story
Company News
Shareholders are advised that the company has received a formal demand from K2012197774 (South Africa) (Pty) Ltd. in accordance with section. . .  Full story
Notice was given that a gross preference dividend no 70 of 5.5 cents per share in respect of the cumulative preference. . .  Full story
Shareholders are advised that Aspen and Aspen Global Incorporated (AGI- a wholly owned subsidiary of Aspen) are currently engaged in discussions. . .  Full story
Amplats confirms that 2400 employees at its Thembelani Mine in Rustenburg who were prevented from exiting underground on Friday 14 June. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0041003.25679.631.69%
JSE Top 4017:0036599.39661.951.84%
JSE Gold17:001402.58-29.43-2.06%
JSE Financial17:0030094.32713.672.43%
JSE Industrial17:0053628.571022.151.94%
JSE Indust 2517:0047016.52987.722.15%
JSE Resource17:0046846.88359.040.77%
DJ Futures19:1215245.00114.000.75%
DJ Ind19:5815314.01134.160.88%
SP 50019:581651.1412.100.74%
FTSE 10017:356374.2143.720.69%
All Ords08:434794.60-10.40-0.22%
NZSE 5007:524462.1014.460.33%
NameTimeRPMove% Move
Gold $19:591367.00-17.66-1.28%
Gold R19:5813661.10-123.55-0.90%
Gold R/kg19:58439205-7183-1.61%
Silver $19:5921.6900-.1520-0.70%
Platinum $19:591439.506.000.42%
Palladium $19:59708.30-2.30-0.32%
Brent Crude19:58105.88.410.39%
Rand / Dollar19:599.98970.03300.33%
Rand / Pound19:5515.6025-0.0305-0.20%
Rand / Euro19:5513.39530.07150.54%
Rand / NZD04:597.97670.00690.09%
Rand / AUD19:559.4886-0.0368-0.39%
Yen / Dollar19:5995.18900.53400.56%
Euro / Dollar19:550.7455-0.0026-0.35%
Dollar / Euro19:591.34070.00470.35%
Pound / Dollar19:550.63870.00270.42%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 TRNSHEX  4145415.00.%75216
2 PUTPROP  7007512.00.%350
3 HOSP-B  500459.89.%117764
4 DELTA  565458.65.%1900
5 MIXTEL  339195.94.%27005
6 CADIZ  12665.00.%199893
7 REMGRO  188008904.97.%1336849
8 CMH  1340604.69.%1174
9 AFGRI  450204.65.%102928
10 OCTODEC  2150954.62.%3924
11 LIB-HOLD  123505304.48.%631275
12 ASPEN  193258224.44.%2986415
13 FAMBRANDS  94003824.24.%1064597
14 IMPERIAL  209208264.11.%1200989
15 STANBANK  109734284.06.%4005559
16 SANLAM  45001754.05.%7060049
17 BIDVEST  240869294.01.%1132334
18 FINBOND  13653.82.%99254
19 TIMES  1877673.70.%42171
20 RESILIENT  55001953.68.%348706

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Major Moves Down
SharenameSaleMove% MoveVolume
1 KEATON   140-19-11.95.%41704
2 SENTULA  115-10-8.00.%119136
3 GOLDONE  175-14-7.41.%5000
4 KAP  315-20-5.97.%35215
5 HARMONY  3644-219-5.67.%1746692
6 VALUE  530-28-5.02.%4000
7 BUILDMX  190-10-5.00.%390
8 RANGOLD  200-10-4.76.%156600
9 BEE-SASOL  32500-1500-4.41.%327
10 PAN-AF  207-9-4.17.%8686913
11 ESORFRANK  139-6-4.14.%180860
12 JASCO  102-4-3.77.%49470
13 PNR-FOODS  7188-268-3.59.%73116
14 CULLINAN  135-5-3.57.%2150
15 SIBANYE  902-33-3.53.%1469021
16 ILLOVO  3174-115-3.50.%411834
17 SUNINT  9555-326-3.30.%118806
18 EHSV  1920-63-3.18.%201
19 DRDGOLD  610-20-3.17.%351914
20 BLUETEL  732-23-3.05.%867080

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New Highs
SharenameSaleHighMove% MoveVolume
1 AECI  11250113612852.60.%248794
2 NASPERSN  758007625019002.57.%1624063
3 TORRE  150155-4-2.60.%38189

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New Lows
SharenameSaleLowMove% MoveVolume
1 RANGOLD  200200-10-4.76.%156600
2 JASCO  10296-4-3.77.%49470

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Index Summary
Index NameRPMove% Move
Top 4036,599.00662.001.84%
Mid Cap54,805.00532.000.98%
Small Cap44,436.00287.000.65%
Resource 2046,846.00359.000.77%
Industrial 2547,016.00988.002.15%
Financial 1511,242.00308.002.82%
Financial & Ind. 3049,729.001136.002.34%
All Share41,003.00680.001.69%
Oil & Gas 32,779.00592.001.84%
Mining 28,591.00125.000.44%
Gold Mining1,402.00-29.00-2.05%
Platinum Mining40.001.003.90%
GENERAL MINING8,174.0052.000.64%
Oil & Gas Producers 17,624.00318.001.84%
Basic Materials 25,108.00126.000.51%
Chemicals 20,869.00334.001.63%
Forestry & Paper 21,566.00234.001.10%
Industrial Metals 24,226.00178.000.74%
Industrials 40,618.001150.002.91%
General Industrials
Consumer Goods 51,820.001063.002.10%
Automobiles & Parts 8,217.00167.002.08%
Household Goods164.00-1-1.07%
Health Care 63,440.001675.002.71%
Index NameRPMove% Move
Food Producers 68,889.00570.000.83%
Personal Goods 921.0026.002.97%
Consumer Services 89,883.001651.001.87%
General Retailers 59,831.00761.001.29%
Travel & Leisure 5,358.00-36.00-0.67%
Support Services 2,430.0013.000.55%
Telecommunications 85,255.00659.000.78%
Financials 30,094.00714.002.43%
Banks 48,964.001484.003.13%
Non-life Insurance 50,306.001151.002.34%
Life Insurance 28,698.00828.002.97%
General Financial 2,798.0038.001.39%
Technology 38,859.00-493.00-1.26%
SHARIAH TOP40 3,403.00431.31%
FTSE/JSE SHARIAH ALL3,523.00401.16%
COAL MINING18,409.00800.44%
FTSE JSE Fledgling 5,738.00-7-0.13%
FTSE/JSE Alt X 1,003.00111.13%
RESOURCE 25,576.001700.67%
DIVIDEND PLUS203.0021.38%
FTSE/JSE RAFI 408,079.001351.71%
Capped Top 4019,306.003591.90%
Capped All Share20,756.003481.71%
JSE TABACO 6,979.00821.20%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
19/06/2013BRIKORFebruary 2013 (Final)
19/06/2013CHEMSPECMarch 2013 (Final)
19/06/2013DELRANDMarch 2013 (Q)
19/06/2013PRESCIENTMarch 2013 (Final)
19/06/2013TRUSTCOMarch 2013 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
AME14/06/201319/07/201329/07/2013R 2.0000
ACUCAP13/06/201328/06/201308/07/2013R 1.5622
SYCOM13/06/201328/06/201308/07/2013R 0.9060
IVT PREF12/06/201328/06/201308/07/2013R 4.6319
INVICTA11/06/201328/06/201308/07/2013R 1.7900
Ex Div**
Share NameDec-DateLDTPay-DateAmount
BRAIT PREF29/05/201313/06/201324/06/2013R 4.4079
MRPRICE22/05/201313/06/201324/06/2013R 2.6500
BASREAD27/03/201313/06/201324/06/2013R 1.7500
REUNERT21/05/201313/06/201324/06/2013R 0.9500
HCI23/05/201313/06/201324/06/2013R 0.8400

Upcoming AGMs**
CodeCompany NameDateStatus
MASMasonite (Africa) Ltd.19/06/2013Confirmed
MASPMasonite (Africa) Ltd.19/06/2013Confirmed
MASBMasonite (Africa) Ltd.19/06/2013Confirmed
CRGCargo Carriers Ltd.20/06/2013Confirmed
CMPCipla Medpro South Africa Ltd.20/06/2013Unconfirmed

Stock Exchange News Service
18/06/201317:40TELKOM SA SOC LIMITED - Settlement of the Multiple Complaints Referral
18/06/201317:30UBUBELE HOLDINGS LIMITED - Notification to shareholders: demand for a general me...
18/06/201317:15PRIVATE RES MORT SERIES 2 (PTY) LTD - New Financial Instrument Listing - PR2C1H
18/06/201317:09PRIVATE RES MORT SERIES 2 (PTY) LTD - Private Residential Mortgages (RF) Limited...
18/06/201317:05DIGICORE HOLDINGS LIMITED - Dealings in securities by directors of a major subsi...
18/06/201317:00DATATEC LIMITED - Dealing in securities by an associate of a director
18/06/201317:00FIRSTRAND BANK LIMITED - Interest Rate Reset - FRC78 FRC79 FRC82 FRC95 FRC98 FRC...
18/06/201317:00COMMAND HOLDINGS LIMITED - Changes to the Board
18/06/201316:57HARMONY GOLD MINING COMPANY LIMITED - Impairment of Hidden Valley asset
18/06/201316:53PRIVATE RES MORT SERIES 2 (PTY) LTD - New Financial Instrument Listing - PR2B1H
18/06/201316:45PRIVATE RES MORT SERIES 2 (PTY) LTD - New Financial Instrument Listing - PR2A1H
18/06/201316:36MTN GROUP LIMITED - Dealing in securities by a director
18/06/201316:30AFRICAN EAGLE RESOURCES PLC - Correction of prior announcement with regard to te...
18/06/201316:301TIME HOLDINGS LIMITED - Renewal of cautionary announcement
18/06/201316:00PSG GROUP LIMITED - Dealing in PSG Group Limited shares by an associate of a dir...
18/06/201315:56VODACOM GROUP LIMITED - Change of directors, No change statement and Notice of A...
18/06/201315:55INGUZA INVESTMENTS (PTY) LIMITED - Interest Rate Reset - ING204
18/06/201315:53LIBERTY HOLDINGS LIMITED - Notice to Holders of Cumulative Preference Shares - P...
18/06/201315:52SABLE HOLDINGS LIMITED - Potential Delisting of the company's shares,offer to re...
18/06/201315:20JSE LIMITED - Full Capital Redemption
18/06/201313:12SYNTHESIS FUNDING LIMITED - SY1007 - New Financial Instrument Listing
18/06/201313:04SYNTHESIS FUNDING LIMITED - SY1006 Synthesis Funding Limited - New Financial In...
18/06/201313:00ASPEN PHARMACARE HOLDINGS LIMITED - Cautionary Announcement
18/06/201312:33ANGLO AMERICAN PLAT LTD - Thembelani employees exited safely underground
18/06/201312:05TASTE HOLDINGS LIMITED - Granting of options to executive directors in terms of ...
18/06/201312:05SPANJAARD LIMITED - Results of Annual General Meeting
18/06/201311:47ALLIED ELECTRONICS CORPORATION LTD - Director's Dealings
18/06/201311:35AFRICAN BANK INVESTMENTS LIMITED - Dealings in securities by directors
18/06/201311:34COMAIR LIMITED - Dealing in securities by a director
18/06/201311:30AFRICAN BANK INVESTMENTS LIMITED - Results of the cash dividend and the capitali...
18/06/201311:12SOVEREIGN FOOD INVESTMENTS LIMITED - Announcement regarding the repurchase of se...
18/06/201311:06LONRHO PLC - Dealing disclosure by a person with interest in relevant securities...
18/06/201310:40ESKOM HOLDINGS SOC LIMITED - Tap Issue EL29
18/06/201310:30FIRESTONE ENERGY LIMITED - Receipt of notice under S249D of the Corporations Act...
18/06/201309:30NEW GOLD ISSUER LIMITED - Listing of additional NewGold debentures
18/06/201309:08FOUNTAINHEAD PROPERTY TRUST - Appointment of Chief Executive Officer
18/06/201309:00FIRESTONE ENERGY LIMITED - Further Initial Director's Interest Notice Appendix 3...
18/06/201309:00ROCKCASTLE GLOBAL REAL EST CO LTD - Dealings in securities by directors of Rockc...
18/06/201309:00LONRHO PLC - Dealing disclosure by a person with interests in relevant securitie...
18/06/201308:59LONRHO PLC - Dealing disclosure by a person with interests in relevant securitie...
18/06/201308:57FIRESTONE ENERGY LIMITED - Initial Director's Interest Notice Appendix 3x
18/06/201308:45LONRHO PLC - TR-1: Notification of major interest in shares
18/06/201308:30THE FOSCHINI GROUP LIMITED - Notification of acquisition of beneficial interest ...
18/06/201308:00Sabmiller Plc - Sabmiller Signs Cooperation Agreement With Kopparberg
18/06/201307:53BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
18/06/201307:52BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
18/06/201307:18ILLOVO SUGAR LIMITED - No change statement and Notice of AGM
18/06/201307:15ABSA BANK LIMITED - ACL020 and ACL025 - Interest Rate Reset
18/06/201307:14ABSA BANK LIMITED - ACL137 - Interest Rate Reset
18/06/201307:13ABSA BANK LIMITED - ACL092 - Interest Rate Reset
18/06/201307:12ABSA BANK LIMITED - ACL070 - Interest Rate Reset
18/06/201307:11ABSA BANK LIMITED - ACL118 and ACL120 - Interest Rate Reset
18/06/201307:10ABSA BANK LIMITED - ACL123 and ACL132 - Interest Rate Reset
18/06/201307:09ABSA BANK LIMITED - ACL133 - Interest Rate Reset
18/06/201307:08ABSA BANK LIMITED - ACL068 - Interest rate Reset
18/06/201307:07ABSA BANK LIMITED - ACL029; ACL033; ACL036 and ACL042 - Interest Rate Reset
18/06/201307:06ABSA BANK LIMITED - ACL130 and ACL131 _ Interest Rate Reset
18/06/201307:06OLD MUTUAL PLC - Total Voting Rights and Shares in Issue
18/06/201307:05ABSA BANK LIMITED - ACL001 & ACL116 - Interest Rate Reset
18/06/201307:05OLD MUTUAL PLC - Block Listing Application

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