Company news in brief Barrick details proposal to settle Acacia dispute
Canadian miner Barrick Gold outlined last week details of a deal it reached with the government of Tanzania to settle its disputes with Acacia Mining, including a US$300 million payment to resolve tax claims in the country.
Barrick's announcement confirms the 2017 deal which called for the creation of a local firm in Tanzania to manage Acacia's assets, a 50-50 split of economic benefits and a US$300 million payment to resolve all outstanding tax claims in the East African country.
Acacia, which was not allowed to negotiate for itself, and Tanzania's government have been locked in a prolonged conflict with the government tearing up mining contracts, hiking taxes and royalties, and banning exports of raw minerals.
Sources have said initial agreement had been difficult to reach due to differing views from the government and the two companies about how the US$300 million would be paid.
Barrick said the proposal would soon be presented to Acacia's independent directors. A source at Acacia said the company planned to meet Barrick this week to get more details. The deal is expected to be implemented by the end of March, the Tanzanian government said in a statement. – Nampa/Reuters
Little has big plans for Africa expansion
Kenyan ride-hailing company Little is expanding to Tanzania and Ghana by May and plans to raise about US$50 million more from investors, its chief executive officer said on Friday.
Little, which competes with global players Uber and Taxify in Kenya, is valued at about US$70 million to US$75 million, chief executive Kamal Budhabhatti said, a minnow compared to rivals but it has aims to expand across Africa.
The company will offer rides in Tanzania's commercial capital Dar es Salaam from this week and plans to launch in Accra by May, Budhabhatti said, adding to operations in Kenya, Uganda and Zambia.
He said Little was talking to investors to raise about US$50 million in series A funding, the financing received when a start-up opens up to outside investors for the first time. It aims to finalise this by mid-2019.
The company, which started up in 2016, has 10 000 registered drivers in Nairobi, with about 60% of those active, and more than a million users on its platform across all markets, with more than 60% of those in Kenya, he said. Uber, which has been operating in Kenya for four years, has 6 000 active drivers. – Namapa/Reuters
Water deal crucial for Kenya project: Tullow
A deal with local Kenyan authorities that would allow Tullow Oil to pump water to pressurise oil wells, crucial for a final green light for the country's only oil project, may be slightly delayed to the third quarter, a Tullow executive said on Friday.
Tullow, with partners Total and Africa Oil, is working towards a final investment decision (FID) by year-end and said last week it had hoped to conclude the deal on water supply with the authorities in the second quarter.
Tullow estimates that Kenya's onshore fields in Turkana province hold 560 million barrels of oil and expects them to produce up to 100 000 barrels per day from 2022.
Another milestone to pass is land acquisition for infrastructure around the oil fields and the 820 km pipeline to the Indian Ocean for which it plans to send out construction tenders within weeks. The government recently gazetted land it wants to buy in order to lease it to the oil partners.
Having clarity on land acquisition and pipeline tariffs is crucial to reach a final investment decision on the US$2.9 billion project which Tullow wants to make money at US$50 a barrel. – Nampa/Reuters
Kraft Heinz forecasts gloomy 2019
Shares of Kraft Heinz Co slumped 20% on Thursday after the food company posted a quarterly loss, disclosed an SEC investigation and wrote down the value of its Kraft and Oscar Mayer brands as it highlighted the tough environment for the packaged food industry.
The gloomy results and forecast from the company, which is one of billionaire Warren Buffett's largest investments, reflect changes in consumer trends away from processed foods to healthier alternatives.
The US$15.4 billion write-down indicates declining fortunes of the iconic brands and other losses in asset value, meaning the company views those assets as less valuable than before the merger.
Kraft, which owns Velveeta cheese and Heinz ketchup brands, forecast adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) between US$6.3 billion and US$6.5 billion in 2019, lower than analysts' estimates of US$7.47 billion, according to IBES data from Refinitiv.
The company, which competes with General Mills Inc and Kellogg Co, cut its quarterly dividend to 40 US cents per share from around 63 US cents per share on Thursday. – Nampa/Reuters
StanChart fined millions by financial watchdog
Standard Chartered Plc said last week Britain's financial watchdog has imposed a fine of 102.2 million pound (US$133.3 million) in relation to its investigation into the bank's historical financial crime controls.
In a filing to the Hong Kong Stock Exchange on Wednesday, StanChart said it was considering its options in relation to the decision by the UK Financial Conduct Authority's (FCA) Regulatory Decisions Committee.
Standard Chartered has been under scrutiny by authorities in both the United Kingdom and United States.
Last month, New York's financial watchdog fined the bank US$40 million for attempting to rig transactions in foreign exchange markets between 2007 and 2013.
The bank said its fourth-quarter results will include a US$900 million provision for potential penalties arising from ongoing investigations by US authorities and the FCA's decision, as well as previous settlements. – Nampa/Reuters