EMPOWERMENT icon Brimstone looks set to cause a flutter among the corporate fashionistas and perennially fashionable value investors.

This week Brimstone signalled an intention to cast off its investment in fashion retailer Rex Trueform (RexTru).

Brimstone acquired an effective 34.6% stake in RexTru in late 2007.

At last count, the empowerment company’s interest in Rextru was spread as follows: 242 654 Rextru ordinary shares and 2.6 million Rextru N-shares as well as 254 126 ordinary shares and 3.7 million N-shares in Rextru’s pyramid holding African & Overseas Enterprises.

That’s a holding roughly worth R50m, but – more importantly – a holding representing a big chunk of a company which cannot, by any stretch of the imagination, be regarded as one of the JSE’s most liquid counters.

Despite the canine connotation of Rex – having been schooled in the classics at Muir College in Uitenhage, I do know Rex is actually latin for “king” – the company is no dog. Rextru, which owns the Queenspark fashion chain, has proved a remarkably resilient (and rewarding) business over the years.

Originally, Rextru was to form part and parcel of Brimstone’s longer-term plans to build a fashion brand house around its clothing manufacturing subsidiary, House of Monatic (HoM).

I suspect that plan is no longer on the table. And Brimstone directors admit as much in commentary that accompanies the company’s recently released year to end-December results.

In reference to the Rextru investment, they noted: “Events and developments within the clothing industry and specifically within Brimstone’s clothing cluster have given cause for Brimstone to review its strategy.”

Brimstone unlikely to be panicked

In this regard Rextru is no longer considered strategic, which means Brimstone is “actively pursuing opportunities to extract maximum value” from the Rextru investment.

For those that need reminding, Brimstone’s clothing cluster was dealt a heavy body blow when subsidiary Fifth Element was liquidated after some unsavoury business practices were uncovered in an internal investigation.

In any event HoM – which thankfully does hold some valuable industrial properties – posted a loss of R30m after factoring in write-offs and expenses.

Still, Brimstone probably won’t be panicked into selling Rextru. Indeed the empowerment company, which has a strong portfolio ranging from healthcare to fishing and assurance to insurance, can afford to sit back and collect the dividends from Rextru.

I reckon, though, Brimstone has done a clever thing in “putting out” its intentions for Rextru. It certainly would not surprise me to hear that Brimstone was inundated with polite calls of enquiry from interested parties – probably ranging from larger fashion retailers to private equity specialists.

I even wonder whether former asset manager Hugh Roberts, who already holds a sizeable position in Rextru, might be tempted to harness a bigger stake?

While there should be no shortage of buyers for Brimstone’s Rextru stake, there is a question around price. When Brimstone struck the deal to buy out Old Mutual’s stake in Rextru and Af&Over, the shares were trading at around 800c and 600c respectively on the JSE.

The shares have crept up, but are still – according to my calculations – trading below tangible net asset value. NAV aside, the earnings multiple on Rextru is well below its larger peers like Foschini, Mr Price and Truworths.

In other words, I don’t think Brimstone will be looking at a 1 000c/share offer for its Rextru shares or 800c/share for its Af&Over shares.

The thing is that there is so much potential tucked away in Rextru, more specifically Queenspark, that it seems quite possible that a larger fashion conglomerate or private equity firm could well be willing to fork out a premium.

One has to consider that Rextru, run for generations as a family-controlled business, has always erred on the side of caution.

Quite striking is the fact that at last count Rextru had over R100m in the bank and a chain of around 50 Queenspark stores.

Perhaps the real potential of the business could come to the fore with a chain of 100 Queenspark stores and only R50m in the bank?

source: – Fin24.com

Popularity: 26% [?]

UITENHAGE-BORN businessman, Butityi Konki, may be in the queue to purchase ailing Port Elizabeth-based First Division soccer side Bay United.

Konki, who is International Boxing Federation lightweight contender Ali Funeka’s business manager, said he would not have a problem being the club’s new owner after United owners, Izingwe Holdings’ decision to get rid of the club.

Izingwe Holdings threw in the towel after United’s failure to return to the Premier Soccer League (PSL) next season.

“Izingwe Holdings regrets to announce that Bay United Football Club will immediately cease conducting business while beginning an extensive process that may lead to the sale of the club,” a statement released by the club said.

“I’m going to speak to my legal advisers in Port Elizabeth about whether to get involved at Bay United or not. I could be interested in the club as many people have called asking me to buy it,” said Konki.

Apart from the club’s failure to return to the PSL, the owners say there were other issues that prompted them to give up on Umlilo.

These included the PSL’s imposition of a R1.3 million liability following the club’s retrenchment of players at the end of the 2008/9 season.

Their unsuccessful attempts to get financial and other forms of sponsorship assistance from the Nelson Mandela Bay Municipality, the Eastern Cape provincial government and commercial sponsors, also contributed to Izingwe Holdings’ decision. “We will engage with all the creditors of the club, including the players. No final decision will be taken until discussions have been held with all relevant parties.

“We undertake to do our best to resolve this matter in the best interests of all parties,” said club boss Sipho Pityana.

Pityana tried to sell United to Konki after they were relegated from the PSL at the end of last season, but the deal fell through.

Pityana informed Konki last year that he was selling United for R15m, but the Johannesburg-based businessman said he was prepared to part with only R5m. “There was no way that I could pay that kind of money for a team that had just been relegated from the PSL.

“I was only prepared to pay R5m but I got no response after writing to Pityana indicating my interest,” said Konki.

- By MONWABISI JIMLONGO

source: Daily Dispatch

Popularity: 39% [?]

A FACE-LIFT is on the cards for a dilapidated primary school in Uitenhage, teachers and parents heard yesterday.

Members of Bhisho’s standing committee on education yesterday visited Jubilee Park Primary School, where they promised the woes of the school’s plank classrooms would be a thing of the past.

Standing committee chairman Mzoleli Mrara and chief whip Christian Martin highlighted government’s commitment to building new classrooms and erecting a boundary fence.

Mrara, who visited the school for the second time since October, said the situation at Jubilee was unacceptable.

Some classrooms had no electricity and there were holes in the roof, making it impossible to work.

“I have noted it’s like night time on days when it is overcast and this is unacceptable,” he said.

“There is no fence at this school, and I know it is difficult to control discipline and the school is vulnerable to thugs,” he said.

He said Jubilee Park Primary would be on the education department’s priority list.

“It is our responsibility to restore dignity to this school and I am committing myself to ensuring new classrooms are built.”

Jubilee Park Primary principal Lorna Basuman said 20 new classrooms were needed, including a science laboratory and a library.

Former principal Hamilton Peterson said pupils had suffered over the years.

“In winter water comes into the classrooms.

“The place was even named a health hazard by health department officials and the municipality,” he said.

The committee addressed the Chatty Greenfields community in Booysen Park on plans for the establishment of a mobile classroom.

Mrara said work on a plot for a mobile school would begin next week.

He said 275 children who were idling at home because of a shortage of schools in Chatty Greenfields had been registered as part of a plan to establish a mobile school in the area.

The children, predominantly from grades R to 2, will receive classes at the primary school by next quarter.

Mrara said: “Every child must go to school because we are building the future.”

He pleaded with the community to look after the mobile school and the permanent school that was to be built next year.

source: The Weekend Post

Popularity: 30% [?]

Popularity: 72% [?]

Thieves mourn the Citi Golf, It was number one on hijackers’ wanted list’.

Even car thieves have been left with lumps in their throat as the last Volkswagen Citi Golf to be produced goes into retirement at a museum at the manufacturer’s plant in the Eastern Cape town of Uitenhage.

I don’t know how many I stole, but the car is a legend 

MULTIMEDIA

• Citi Golf farewell

Volkswagen punted the Citi Golf as South Africa’s best-selling car, but didn’t mention that it occupied poll position on the “wanted” lists of criminal networks.

Some criminals said the Citi Golf ranked as one of the vehicles most likely to be taken away from its owner – either through theft or by force.

As the curtain comes down on a made-in-South-Africa motoring legend, convicted car thieves shed some light on why Citi Golfs are in high demand by criminals.

“The demand for the Citi Golf is always there in the townships,” said a 35-year-old convicted car thief and hijacker, who asked not to be named, and who is now serving a 15-year term at Durban’s Westville prison.

“I don’t know how many I stole, but that car is a legend. You can customise and do anything you want with it; I think that is why people like it so much.”

His cellmate, a 37-year-old serving 20 years for the same crimes, said: “I stole many cars . BMW 325s, Jumbos [VW Golf mark 2] and VR6s [Golf mark 3]. But the Citi Golf was always the easiest to sell.”

Both men claim that they never shot their hijacking victims.

The 37-year-old said they would go to various Durban suburbs or to the inner city looking for a specific car to steal, but would hijack a driver only if they couldn’t find one parked.

“Hijacking is a more serious crime than theft,” said the 37-year-old.

When hot, a new Citi Golf would be sold for between R6,000 and R8,000.

“Hot” refers to the period shortly after the car was stolen or hijacked and before its identity was changed, he said.

Once the car “cooled down,” thanks to an expert who removed and re-stamped vehicle identity tags and engine numbers – and in some cases re-sprayed it – its value would increase.

“When it had been completely done, we would sell a new Citi Golf for between R10,000 and R15,000, depending on the condition and skill of the person doing it. If you trust that person, and he has worked on cars before that never had problems with the police, then you could charge a good price,” said the 37-year-old.

New Citi owners were outraged in 2007 when a major insurance company refused to insure Citi Golfs assembled between 2004 and 2006 because of the rate at which they were being stolen.

The move affected about 2000 policyholders though the insurance company, Hollard, has since changed its stance and now provides cover for the car.

But not even the threat of parting with the vehicle unceremoniously would deter those who loved the Citi from buying it.

Bank employee Sibusiso Goba, a confessed VW fan, who bought his VeloCiti in 2005, said: “My philosophy is that I will never deprive myself of something that I love because of another person.”

First introduced as the VW Golf mark 1 in 1978, the car was later given a face-lift and re-introduced as the Citi Golf in 1984.

Volkswagen intended to produce it for only five years – but ended up making it for the next 25.

In 1984, available in yellow, blue and red – thanks to some creative input from fashion designer Jenni Button – it proved a hit.

And for decades South Africans were sold on its stylish looks, reliability and economy. Some have even confessed to having had some hanky-panky in a Citi. More than 600,000 of them were sold in South Africa, despite their lack of safety features. But some have wondered what the fuss is all about.

Jeanne Fochessati, owner of a black Citi Rox, said on the car’s farewell website www.goodbyeciti.co.za : “True what they say – if you’ve never owned one, you’ll never understand.”

source: Time Live

Popularity: 39% [?]

background) and the rubbish dumped on the ground is causing concern for Redhouse residents, who say the municipality doesn’t listen to their appeals for the area to be cleaned up.

IN The Herald on Thursday I saw the municipal dumpsite eyesore in Rosedale (“Separate Uitenhage from Mandela Bay!”), so I took some pictures of the Redhouse dumpsite which has the same problem. The Redhouse residents also blame the municipality for poor service delivery.

Phoning them does not help. Hopefully they will see this in The Herald and clear all the rubbish. – D Robertson, Redhouse, Port Elizabeth

source: The Weekend Post

Popularity: 32% [?]

TWO political rallies, to be addressed by heavyweights from the ANC and the Congress of the People respectively, are scheduled to be held at the same venue, the Jabavu Stadium in Uitenhage, on Saturday, Human Rights Day.

The municipality confirmed yesterday that it had invited Winnie Madikizela-Mandela to be keynote speaker at a gathering that will be held on the soccer field at the stadium to celebrate the day.

It has been disclosed by the National Union of Metalworkers of SA (Numsa) that youth league president Julius Malema, will also deliver a speech.

SACP general secretary Blade Nzimande has also been invited, said Numsa organiser Andile Zitho.

At the same time, Cope supporters are expected to turn out in big numbers to hear their president, Mosioua Lekota, speak in the rugby section of the stadium.

It is not clear how the municipality decided to allocate the venue to both parties.

ANC provincial spokesman Mcebisi Jonas said he was not aware that the rival party intended holding its own rally at the same venue and has undertaken to investigate.

“This has potential for conflict,” he said.

Municipal spokesman Roland Williams said the municipality “would encourage any political party to encourage its members to attend the municipal celebration”, which would commemorate the Langa massacre.

Cope regional spokesman Elvis Bana confirmed they had booked the venue to hold their own Human Rights Day celebration rally and were adamant that his organisation “will not call off the rally” .

Bana said “the venue was booked as early as February 2 this year and it was confirmed by the municipality.

“We are perturbed by this apparent political intolerance and by the kind of behaviour of the municipal officials who exhibit partisanship in their work,” said Bana.

Two other popular ANC crowd pullers, Cosatu general secretary Zwelinzima Vavi and the party‘s head of elections, Fikile Mbalula, will be in the Eastern Cape on that day to address a Queenstown rally.

Source:   The Weekend Post

Popularity: 9% [?]

THE Nelson Mandela Bay metro‘s Business Confidence Index continued to decline in January “under recessionary economic conditions and low levels of both business and consumer confidence”.

The decline came amid the economy contracting by -1,8 percent in the fourth quarter of last year, the first annual retail sales decline in nine years, and a 22% plunge in manufacturing output.

The index, compiled for the regional business chamber, tracks the performance of 15 key economic indicators chosen from those available that are believed to “best reflect the business mood in the PE/Uitenhage area”.

These include the inflation rate as measured by the Consumer Price Index for the metro; the prime rate at month end; the rand-dollar exchange rate; retail sales in the Eastern Cape; the total number of new cars sold in the metro; the value of building plans passed and completed; the Consumer Confidence Index for the metro by the Bureau for Economic Research of Stellenbosch University, and number of passengers arriving at the PE airport.

But Dr Neil Bruton, compiler of the index, says current developments “will ultimately yield a consolidation in the rate at which the index is declining at present”.

“The inflation rate is set to decline rapidly in 2009 and … interest rates are set to decline, probably steeply. Furthermore, households and businesses are addressing their debt positions, with growth in credit extension to the private sector down to 11,9% in January, the lowest since November 2004, and with growth in demand for mortgage finance falling to the lowest level since mid-2003.”

The indicators that supported the index through January included significant declines in the trend cycles of the metro inflation and prime interest rates; continued growth in the real value of buildings completed and steady growth in value of those passed; and marginal growth in the trend cycle of retail sales.

Negative indicators included the “steep decline” in new cars sold and the “declining” number of airport passenger arrivals.

“The level of consumer confidence in the Eastern Cape, while reflecting a generally declining trend, remained unchanged.”

source: The Weekend Post

Popularity: 14% [?]

A MOTHERWELL hostage-taker yesterday claimed in the magistrate‘s court that he had gone to the house of the victims to “sort things out” with his girlfriend after he heard allegations of an affair.

Xola Stanley Zembethe, 36, faces charges of kidnapping and illegal possession of a firearm and ammunition stemming from a tense 16-hour standoff between him and a police contingent.

The drama unfolded on February 16 in Ndlovu Street, where Zembethe allegedly took hostage his girlfriend‘s sister, Nompumelelo Myali, her year-old son Lisa, another son, Mafixole, 19, and a relative, Simphiwe Wilskuit, 23.

Zembethe, of Uitenhage, and his girlfriend, Bulelwa Jack, were embroiled in counter accusations of cheating on each other, the court heard.

During a bail hearing yesterday, Zembethe said he would plead not guilty to the charges when the matter went to trial. He insisted on conducting his own defence.

He said that after he had arrived in Motherwell from Cape Town that morning, he had wanted to set the record straight regarding rumours that he had cheated on Jack. “Prior to this, I received a phone call saying I must not accuse her of cheating because I was also having an affair. They also accused me of having killed my mother and children. I said, ‘I will deal with you when I arrive in Port Elizabeth because of false allegations‘,” said Zembethe.

Shortly after his arrival at the house, four occupants were held hostage, allegedly by Zembethe, and threatened with a firearm.

Two shots were fired. A firearm was allegedly taken from Zembethe after the incident. He claimed he had found it on a Jeffreys Bay beach in December.

Zembethe refuted claims by the state that he had a tendency to watch hostage-drama films.

Investigating officer Inspector Monde Sithole testified that Zembethe had demanded Myali call her husband, Simphiwe, and tell him to bring Jack from Despatch.

Asked why he wanted to be released on bail, he said he was responsible for his 13-year-old child, he was required to perform elder duties in the Presbyterian Church of Africa and he was also the co-ordinator of an HIV/Aids project

The matter was postponed to March 19 for the investigating officer to verify Zembethe‘s previous convictions. The state alleges he has several previous convictions, including car theft and armed robbery.

He has two pending case involving shoplifting and arson.

source: The Weekend Post

Popularity: 16% [?]

Tabelo Timse MUNICIPAL CORRESPONDENT

A MAN was arrested after a group of toyi-toyiing people disrupted voting in the Nelson Mandela Bay by-elections at a Uitenhage polling station last night.

Earlier, voting got off to a good start in all eight wards holding by-elections yesterday.

IEC regional supervisor Crosby Bacela said the group had been protesting about a tent used as a polling station in Ward 53.

“They claimed that the voting station was illegal and tried to stop some of the IEC staff from performing their duties. We had to call police to intervene and one man was arrested.”

It was not clear last night which party the protesters were supporting.

Voter turnout is expected to be 50 per cent or more. Full results will be released today.

While some voting stations got off to a quiet start in the early morning, hundreds of people later queued outside waiting to vote at the George Botha Hall in Kwanoxolo.

The presiding officer at the station, Buntu Matsha, said that by 11am more than 380 people had already voted and 3961 people were on the voters‘ roll. “We are expecting people to come in a bit later.”

The queue stretched from the entrance of the hall to the street.

Matsha said there were tensions among the political parties, but everyone was well behaved.

However an elderly woman, Liziwe Simani, accused an election officer of misleading her to vote for another party instead of her party of choice.

Simani said: “I told her I couldn‘t read and write. She took me to the voting booth and asked me which party I wanted to vote for. I told her ANC but she showed somewhere else to put the cross. It was not the ANC emblem.”

Simani refused to go and said she wanted her ballot paper to be taken out so she could vote again.

Matsha said the incident was a case of misunderstanding. “The official told the woman that she should place the cross on the party of her choice in the first row, but the woman interpreted that as the top of the ballot and for the first party.”

Presiding officers in other wards reported a slow turnout in the morning, but by noon people started to trickle in.

In Ward 54 at Ncedo High School in Motherwell, presiding officer Thabo Bailey said that between 7am and 8am there had been 32 voters. “Everything is running smoothly. There were just a couple of people who were turned away because they were not registered.”

Nonkoliso Kula, from area 29 in NU12, who was outside the school, said although she had been disappointed with previous councillor Lindikhaya Matebese, she would continue to vote to make sure there was change.

“I want the person I‘m voting for to concentrate on the rectification of RDP houses and the tarring of roads.”

Bacela said no incidents had been reported apart from complaints from voters who had been turned away because they did not meet the requirements of registering for the by-elections.

There was also a heavy police presence at all the polling stations.

Source :The Herald

Popularity: 6% [?]