Sunday, August 31, 2008

Sexwale loses millions

Say it with a sting.....

Marcia Klein Published:Aug 31, 2008

Mvela bosses say goodbye to R1.1bn thanks to market and earnings woes.

Tokyo Sexwale and other directors of Mvelaphanda Group and Mvela Resources have lost more than R1.1-billion between them in just a few months as Mvela share prices and earnings came under continued market pressure.

Sexwale has lost R430-million since the end of March, though his shares in Mvela Group and Mvela Resources are still worth R1.17-billion. He also has various other sources of wealth.

Two other Mvela directors, Mark Willcox and Mikki Xayiya, have lost R172.4-million and R86.9-million, respectively. But Willcox is still worth R460-million and Xayiya R230-million based on their company shareholdings.

Mvela Group CEO Yolanda Cuba’s wealth dropped by R1.7-million to R4.47-million, based on her Mvela shareholding.

The declining fortunes of Mvela directors match the share price declines of Mvela Group and Mvela Resources, which have been under pressure since March.

Company results, released this week, explain why.

Mvela Group reported a net annual loss of R1.7-billion, down from a profit of R1.4-billion in the previous year, largely due to “dramatic swings in the market values of Mvela Group’s investments”.

Its investment in Absa Group alone was down by more than R1-billion. Other strategic investments that required writing down were Group Five and Vox Telecom.

The share prices of Mvela Group’s investments dropped by between 17% and 38% in the year to June.

Fair value adjustment and net loss from investments was R1.6-billion.

Mvela Group’s fortunes are linked closely to the stock market because it is an investment company, specifically in financial services, consumer services, construction and infrastructure, non-mining resources and energy, and telecoms, media and technology.

The latter sectors have been of particular interest to the group over the past year.

It has bought 25.5% of Avusa, the owner of the Sunday Times, for R1.3- billion.

It is also in discussions to buy Telkom, and bought 12.3% of Vox Telecom.

Mvelaserve, which houses Mvela’s operating subsidiaries, improved its performance.

The company, which is involved in facilities management, security, catering, cleaning, gaming and franchising, showed a small improvement in operating profit.

In the coming year, the Mvela Group will focus on capital preservation and maximising shareholder returns, it said.

It will continue to make acquisitions and these areas of focus should, over time, counteract the volatility of markets.

Things looked better at Mvela Resources, the mining investment and exploration company, which reported a R185.3-million profit, from a prior-year loss of R2-billion.

The results largely reflect its investments in Northam Platinum and Trans Hex.

A highlight of the year was the approval of the Booysendal transaction. Mvela now has a controlling 62.8% share of Northam, “taking it a step closer to being an operating mining company”.

Booysendal will now be developed for the benefit of Northam and Mvela shareholders.

Mvela Resources director Lazarus Zim has lost a massive R307-million in his investment in Mvela Resources, but he is still worth R827.8- million based solely on his investment in this company.

Mvela directors have a large number of directorships between them. According to Who Owns Whom, Sexwale is a director of 18 companies, Willcox 28 and Xayiya 19.

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Comments: (15)View Latest
zuluboybob said at Aug 31 2008 2:14AM

ShoeLace said at Aug 31 2008 2:43AM
Don't worry Tokyo.You'll get it all back from the gvt, somehow. Thats where you got it from in the first place.

chickenrunner said at Aug 31 2008 3:51AM
Soon he will be looking for a cushy job at the ANC head office.

DDarko said at Aug 31 2008 6:28AM

MaleLeo said at Aug 31 2008 6:53AM

No....he got most of that money from his late dad, who was a thug in SOWETO then. I dare not say what money that was , you wanna guess ?

DDarko said at Aug 31 2008 7:31AM
Business is so fickle.

DDarko said at Aug 31 2008 7:32AM
MaleLeo said at Aug 31 2008 6:53AM

Do say...

debecker said at Aug 31 2008 8:26AM
he is not a businessman and even with all the help he got.

donorfatigued said at Aug 31 2008 11:44AM

et2bru said at Aug 31 2008 12:50PM
Infantile reporting. Lacks any resemblance to anything analytical. Tabloid crap.

meerkat said at Aug 31 2008 5:14PM
Easy come, easy go. He was the main criminal in Gauteng when he was premier and any "empire" built on trash would someday come crumbling down.

rorii said at Aug 31 2008 5:43PM
How did he make those millions, this is one opportunist that must never be allowed to run for the presidency. This fronting token owns no more than 15% of Mvelaphanda, the rest is owned by whites. Thanks to Chris Hani's assassination, Tokyo got all the glory for putting up a crying act for TV cameras. I see the two opportunists, Tokyo and Ramaphosa, are slowly making their way back into politics, whites are done using them to secure govt and private sector contracts and the two tokens know it.

MaleLeo said at Aug 31 2008 6:53AM

He attempted to chase the Gauteng drug lords and they responded by exposing his drug dealing father, he suddenly stopped the witch hunt.

whizzkid said at Aug 31 2008 6:03PM
He will make it all back before the end of 2010. The market works in cycles. What this paper has failed to state is how much growth his company has made since it was established.

chickenrunner said at Aug 31 2008 6:23PM
Does this mean the ANC is bankrupt...

soekies said at Aug 31 2008 9:05PM

He drank himself full of the gravy!

Easy come, easy go!

...I know somebody, who know somebody, who know somebody who scored cocaine from Sexwale, for many years!

His day will come, watch this space...

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