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In a busier day for corporate news, Anglo American unveiled a plan for what it called its most radical restructuring in decades, while Old Mutual Property Fund has sizeable new investment. Transaction Capital (TransCap) warned of a hefty, but improved, loss, and Business Unity SA has confirmed a legal fight against NHI. In international news, the White House has unveiled new tariffs against Chinese products, with the tariff set on electric vehicles set to quadruple to 100%.
Transaction Capital, which unbundled WeBuyCars in April, said on Tuesday it has achieved its objective of becoming an unencumbered investment holding company with two assets. It now owns 100% of debt recoveries group Nutun and 75% of Mobalyz - which includes SA taxi and written down to zero, with net cash of approximately R120 million. But the group still expects to report a hefty loss, improving by between 16% and 26% in its six months to end-March from a loss of R1.7 billion previously. The unbundling of Transaction Capital returned R5.2 billion to shareholders and the group further raised R1 billion via the placement, which has allowed it to materially pay down its debt shortly and move it to a net cash position at a holding company level. But Mobalyz made a core loss from continuing operations driven primarily by the reduction of the absconsion, violation and credit shortfall cover (AVCS) in SA Taxi's insurance business, which has resulted in a once-off net loss of R966 million. SA Taxi, together with the funders, elected to materially reduce this cover, resulting in an accelerated impairment charge, it said. Despite the adverse impact that this decision has had on the period's earnings, it is necessary to create a sustainable insurance business, which has now been achieved, it added. SA Taxi hasn't achieved a balance sheet restructure but the losses of this business, while consolidated at group level, is not being funded at holding company level. Transaction Capital fell 2% on Tuesday and it's currently valued at about R2.2 billion on the JSE.
