http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.11Change: 0.00
R/$ = 11.90Change: -0.02
Au 1205.90 $/ozChange: -0.17
Pt 1147.50 $/ozChange: -1.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Sep 19, 2003

VenFin to stick to its technology strategy

Back
Health|Road|SECURITY|Solutions|Power|Operations
Health|Road|SECURITY|Solutions|Power|Operations
health|road|security|solutions|power|operations
© Reuse this Technology, telecoms and media investment company VenFin – best known for its interests in Vodacom and e-TV– remains committed to its strategy of investing in local and international technology businesses, despite signifi-cant changes in market conditions and growing investment-community im-patience.

CEO Dillie Malherbe admitted last week that the radical shift in market conditions for technology companies since VenFin’s inception in September 2000 had resulted in many challenges as well as questions about the rationale for the group’s continued existence.

However, he said that the board had recently decided to confirm its mandate and strategy and that there were also, at present, no plans to delist the company and run it on a private basis.

He reported, though, that its focus was likely to shift away from start-up opportunities towards businesses that had survived the technology bubble, as well as ‘rerated’ larger opportunities.

The company also did not discount the prospect of possible disposals of smaller contributors so as to allow the company to concentrate on investments that could have a ‘material impact’ on VenFin.

This meant that its positions in operations such as technology company Inala, of Midrand, accounting-software company FRS and sports-branding and entertainment company Sail could well be re-evaluated.

Malherbe added that it would continue to be circumspect in doing deals, revealing that, of the 200 enquiries brought to it over the last year, it had only conducted seven detailed assessments and pursued two new investments.

“We are under no pressure to do deals, but our board has indicated that it will continue to support us in pursuing strategic opportunities.” Its biggest disappointment for the year came in the form of its security solutions provider, Intervid, which has been hit by managerial power struggles and financial underperformance.

Malherbe said VenFin “shared the blame” for failing to act decisively, but added that strong action was being taken to tackle the problems in the business. However, he added that VenFin still saw a future for the company given the fundamentals of the industry, but he acknowledged that the road back to financial health would be a slow one. Intervid aside, Malherbe insisted that other parts of the portfolio were performing well, particularly its investment into mobile phone network provider Vodacom, which is by far the biggest part of its portfolio. In fact, the Vodacom investment contributed more than half of the R665-million-worth of headline earnings reported by VenFin last week. Overall its headline earnings fell by 5,9% during the 12 months to June 2003, from R707-million for the 15 months to June 2002 – the group changed its year-end to June, from March, in 2002.

VenFin also viewed its 1999 investment into privately-owned telecoms solutions company PsiTech as another success. The company contributed R27-million to headline earnings in 2003, more than double its 2002 contribution of R11-million, and VenFin is confident of more to come.

VenFin’s 32% interest in PsiTech has been valued at R96-million.

VenFin was also optimistic about its investments in auto-recovery firm Tracker, in which it has a 23% interest, and e-TV, where it has a 33% stake.

In the longer-term, management at VenFin is likely to pay more attention to increasing the net asset value of the business, which is a key indicator of performance for an investment holding company. Commenting on prospects, Malherbe said that, given VenFin’s long-term outlook, there were a number of opportunities emerging for new technology investments both locally and abroad.
Edited by: Terence Creamer
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other ICT News
The Department of Telecommunications and Postal Services (DTPS) has set aside R200-million of its R1.4-billion budget this year to kickstart the first phase of South Africa (SA) Connect national broadband strategy. Over the next three years, the department aimed to...
Article contains comments
Local mobile operators’ claims that rising input costs are fuelling contract price hikes are not reflected in these companies' financial statements, says a research body. ResearchICTAfrica has put together a research brief that asks whether post-paid price increases...
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
More
 
 
Latest News
South Africa’s crude steel production dropped by a sizeable 17.2% year-on-year to an estimated 530 000 t in April, amplifying a global trend that saw world steel production decline by a comparatively marginal 1.7% to 135-million tons in the fourth month of the year....
The Treasure the Karoo Action Group (TKAG) on Friday called on government to delay publishing final regulations and issuing rights for shale gas exploration in the Karoo, until a 24-month strategic environmental assessment (SEA) has been concluded. TKAG CEO Jonathan...
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96