Friday, November 7, 2008.

From Creamer Media in Johannesburg, I'm Shona Kohler.

Making headlines:

South African telecoms group Vodacom is to be listed on the JSE as part of a larger R22,5-billion acquisition and unbundling transaction. This was confirmed by shareholders Vodafone and Telkom on Thursday.

The deal will also see Vodacom becoming the exclusive vehicle through which Vodafone, the world's largest mobile telecoms group, pursues acquisitions in sub-Saharan Africa. Ghana and Kenya, where Vodafone is already present, will be excluded.

Vodacom, which is South Africa's largest network operator, already has a portfolio of operations on the African continent, but has been constrained from pursuing a more aggressive assault on the African market as a result of a previous shareholders' agreement.

The Vodacom listing is planned for the first half of 2009.

Paper and pulp producer Sappi has reviewed its capital expenditure plans and expects the timelines on some projects to be extended. The company expects demand for its products to fall in the near term and for margins to remain under pressure.

CEO Ralph Boettger indicates that all essential and maintenance projects are proceeding, but that there has been a re-prioritisation of nonimmediate projects in line with slowing market conditions.

He expects the company's 2009 capital budget to decline by $150-million when compared with 2008. However, he also stresses that the moderation is a reflection of the maturation of the $460-million Sappi Saiccor chemical cellulose project, which is currently being ramped up to full production.

Also making headlines:
The IMF warns of a deepening recession in rich countries.
Study shows a 15% renewable energy target is financially viable.
Nationwide is under formal liquidation.
And, Nersa expects a renewable energy feed-in tariff by February.

That's a round up of news making headlines today. For more on these and other stories please visit engineeringnews.co.za.