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12 BusinessDay www.businessday.co.za Tuesday 29 August 201 7

COM PAN I ES

NEW JSE LISTING Luring consumers with food ARC could trade • Fashion retailers are targeting new in-store concepts at discount to

Colleen Goko r ie nce ,” said TFG head of the crowds particularly over the net asset value Retail Writer marketing and eCommerce weekends and sees customer Kathryn Sakalis. dwelltimein storeincreaseas Moyagabo Maake count to the NAV in terms of val- Shopping is no longer enough of “We have begun to answer well as additional rands in the Financial Services Writer uation, but this would be offset a drawcard for consumers these needs. We have intro- till. The Vida allows customers against one’s personal view of to come and spend at brick- duced a juice bar and a Vida e to sit and relax with a coffee African Rainbow Capital (ARC) the stated R8.50 a share NAV, and-mortar stores. Many fash- Caffé coffee shop in one of our before or after their shopping,” Investments faces the prospect how conservative it is, for ion retailers are looking to new biggest @home Livingspace said Sakalis. of trading at a discount to its net example if the true intrinsic NAV in-store concepts and food to stores in City and a Edco n ’s Edgars brand has asset value (NAV) when it lists is actually quite a bit higher; and pique the interest of fussy and funky barber shop in two of our collaborated with Famous on the JSE next week due to its the credentials of the manage- under-pressure customers. Markham stores. Both concepts Brands to test the waters in complicated cost and manage- ment team involved,” said Jean Department stores such as bring a little something extra … a quick dining with the launch of a ment structure. Pierre Verster, a portfolio man- Stuttafords and first little surprise and delight if you café concept inside the Edgars The company – w h ic h ager at Fairtree Capital. began the trend decades ago. But l i ke ,” she said. store in Eastgate mall in Johan- mining magnate Patrice Mo- Investors would be eyeing cafes soon fell out of favour. The juice bar concept and nesburg called MADE. tsepe is taking public after two the fund’s black economic Woolworths brought food coffee shop for @home Living- The café has been in oper- years of quietly snapping up empowerment credentials. back into popularity with the space was included as part of ation for three weeks and was minority stakes in Alex a nde r Alphawealth analyst Keith introduction of its coffee shops the store’s revamp earlier in inspired by the desire to Forbes, EOH, Afrocentric Health, McLachlan said the fund’s costs inside its stores. Edgars and TFG 2017 and had been instrumental enhance the customer shopping Rain and Santam – is listing with implied a 20% discount from the are just two examples of in attracting customers. experience and offer them a an initial portfolio worth R4.5bn, first day of trading, likening it to retailers that are offering a sim- “Set up to look like a space to pause and connect and seeks to raise R4bn in capi- investment company Astoria. ilar service and experience to minikitchen, the juice bar draws while buying the latest fashion, tal from investors at R8.50 per Astoria, which holds shares that of Woolies. beauty and hot items — all while Snack attack: Woolworths introduced coffee shops in its stores, while Edgars and TFG are following share. The net proceeds of the in US blue chips, such as private TFG said with the multitude enjoying a delicious meal and the trend. Edgars has launched a café concept at its branch in Eastgate mall. /Reu ters listing are expected to raise total equity firm Blackstone, social of international players appear- CUSTOMERS ARE great ambience, said Edcon. assets to R8.4bn. media giant Facebook a nd ing in the country and the ease of YEARNING FOR A “The MADE Café is the and will only make a decision as 2,400m² immersive food hall at TFG said that its initiatives ARC Investments, which has technology company Apple, is global brands, it felt it was time ultimate destination shopping to its viability as well as further Westfield Bondi Junction in Syd- were still in their infancy, but been set up as a holding com- trading at R11.65, a 25.4% dis- to think differently in order to POINT OF DIFFERENCE experience, infusing fashion and roll-outs after this pilot phase.” ney earlier in August. both brands hoped to be able to pany with its assets held in the count to its NAV of $1.12. win customers. WHEN IT COMES TO food, aspokesman forthe com- Woolworths, meanwhile, has The food hall features oyster, roll out the concepts in other ARC Fund, a private-equity It appeared that telecoms “Customers are yearning for THEIR SHOPPING pany said. taken in-store food to its Aus- salad, sushi and juice bars as stores around the country in the structure, will charge a manage- operator Rain would represent a point of difference when it “Edcon is assessing its per- tralian operation David Jones. well as a florist, deli, bakery, near future. ment fee of 1.7% a year on the 30% of ARC Investment’s NAV, comes to their shopping expe- EXP ERI ENCE formance on an ongoing basis David Jones opened its new butcher and fishmonger. gokoc @ bu sinessliv e . co . z a average of the invested and key to assessing the value of the closed net asset value of each R8.50 offer, Verster said. quarter. Should the value of its Adrian Cloete, portfolio man- assets stay the same by Novem- ager at PSG Wealth, saw value in CEMENT PRODUCERS ber, when the first management the operator, which held the fee is due, investors are due to only licence in the 2,600MHz pay a steep R35.7m in fees. spectrum. “Rain has made sig- Mooted Afrisam merger fails to raise a murmur at PPC This excludes a 0.25% annual nificant progress in building a cash management fee, payable dedicated national LTE Advan- every quarter. It also excludes a ced network in the valuable Alistair Anderson the meeting that a tie-up could should one arise. The smaller their latest round of talks for sure over the last 18 months, due “The market is in need of 16% “performance participation” u nde r utilised frequencies. [It ] take up to 18 months after a deal cement producer, Afrisam, about seven months, he said. to supply growth and lacklustre co n s o l id at io n ,” he said. incentive, which will see the could disrupt the mobile market. The proposed merger of cement had been agreed. pulled its second merger pro- If an offer were accepted, it demand, has made life difficult “PPC, with its scale and cost general partners of the fund – “The R8.50 is a fair price to producers PPC and Afrisam was Regarding other merger pos- posal on Friday and has said it is could take between 12 and 18 for cement producers, especially advantage and post its equity including Motsepe and joint offer to outside investors as they barely discussed at PPC’s annual sibilities, Ne l s o n said PPC was working on a larger and months, given legal and compe- so for those with high debt and raise last year [2016], is relatively CEOs Johan van Zyl and Johan get the opportunity to particip at e general meeting on Monday. an attractive company with the stronger proposal. tition authority processes, to no real or sustainable cost better placed to weather a sus- van der Merwe – converting a in investment opportunities No questions were raised potential to draw more than one Nelson said PPC was contin- complete a merger. advantage; Afrisam falls into that tained low cement price envi- lower class of shares into ordi- normally only available to about what is likely to be a pro- suitor. PPC would consider any uing its daily operations while it A merger of Afrisam and PPC br a c ket ,” Mish-al Emeran, an ronment. In my view, Afrisam is nary shares on achieving a 10% broad-based black economic tracted affair, with PPC’s chair- binding and firm offer, from aw a it e d the next proposal. would largely be beneficial for equity analyst at Electus Fund more in need of a deal,” he said. yearly growth in assets. “This fee empowerment co mp a n ie s .” man, Peter Nelson, saying after Afrisam or any other party, PPC and Afrisam had been in Afrisam. “Cement-pricing pres- Managers, said. andersona @ bu sinessliv e . co . z a structure would attract a dis- maakem @ bdfm . co . z a

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