Media & Insights

Cover Story – MTN is back

28 October 2021

After a difficult few years, MTN has come roaring back, more than doubling its market capitalisation in the last year.

While its share performance has brought the company back in line with historical valuations, the path ahead to a genuine rerating of the group remains challenging and will require faultless execution from management…

Hospital stocks: the prognosis

07 October 2021

Mergence Investment Managers portfolio manager Izak van Niekerk says the recovery in private hospital stocks, particularly his preferred picks Netcare and Life Healthcare, is based on operations “normalising” by the end of September 2023 — “factoring in a handicap for the slow vaccine rollout”, he says.

Telkom has plans to list its masts and towers business

22 September 2021

Commenting on the separate listing of Gyro, Peter Takaendesa, head of equities at Mergence Investment Managers, said the listing of mobile network tower assets was long overdue in South Africa. It was an asset class that had been missing on the JSE.

Vodacom details its participation in Ethiopia after winning a lucrative telecoms licence

13 September 2021

Peter Takaendesa, a senior portfolio manager at Mergence Investment Managers, said Ethiopia is a hotly contested country, as “every company wants exposure to the market” because it is “the last remaining large market that hasn’t been explored by international companies.

Investors support new index caps on Naspers and Prosus

03 September 2021

Though Peter Takaendesa, head of equities at Mergence Investment Managers, agreed that capping limits risks, he said the considerations may be different for investors that are restricted to local investments. “For investors who are not allowed to invest outside SA, who are running a domestic fund, the Naspers/Prosus portfolio is somewhat unique. Perhaps they would want high exposure to that because we don’t really have stocks like Facebook, Amazon, Netflix or Google. Naspers sort of provides that in SA,” he said.

Avoiding the cracks: MTN’s delicate dance is paying off

13 August 2021

These are disappointments, but are not material in the bigger picture,” says Peter Takaendesa, head of equity at Mergence Investment `Managers. “They are doing the right thing by exiting the Middle East — though arguably MTN hung on in countries like Iran for too long. Investors will be more comfortable if they don’t have to worry about sanctions-busting and other complexities

Mergence Investment Managers announces changes to its executive leadership

11 August 2021

Boutique asset manager Mergence Investment Managers, who manages R35bn in assets, has promoted Yoza Jekwa to CEO, among several changes to its executive team.The appointment of Jekwa, who has been a joint-MD since November 2019, is part of a number of changes to its executive leadership team.She has 17 years of experience in the private investment field..

Market lauds Telkom as Maseko hands baton to Taukobong

05 August 2021

Takaendesa comments: “Today [Wednesday] was a difficult day for domestic stocks as most of them closed in the negative, while Telkom shares still managed to hang on to a small gain. We expected that Serame would be in a strong position to take over if the board decided to appoint internally..

Has the world mastered the art of steering economies through difficult times?

04 August 2021

Change has always been part of life. However, some changes are so dramatic and significant they alter the course of life and history for ever. The global financial crisis (GFC) of 2008/09 put the global financial system at risk, triggering a great recession and raising the risk and fear of deflation by Fabian de Beer..

Hospital group Netcare looking healthy

29 July 2021

Mergence Investment Managers thinks Netcare (NTC) is a cheap, quality business that may not need a return to FY19 (pre-Covid) profitability to deliver good investment returns.Mergence’s scenario analysis indicates risk is skewed to the upside and that downside appears limited.Indications that NTC is a quality company include a detailed bottom-up analysis of Porter’s five forces, moat assessment, supported by high long-term average margins and an unbroken record of dividend growth for 23 years.

Mergence Lesotho launches two unit trusts

28 July 2021

Mergence Lesotho launches two unit trusts.

Prosus faces investor criticism over $144 million fee for Naspers share swap

27 July 2021

I wouldn’t want to see such huge amounts of money being paid,” said Peter Takaendesa, head of equities at Mergence Investment Managers in South Africa.

Will CEO still get to unbundle Telkom?

25 July 2021

Including staff at BCX, which Telkom bought in 2016, the group’s total … Peter Takaendesa, head of equities at Mergence Investment Managers, said.

Telkom shares sink after announcing CEO will step down next year

23 July 2021

Peter Takaendesa, head of equities at Mergence Investment Managers, said Maseko’s departure raised some questions..

Building infrastructure through Private market investments by Yoza Jekwa

08 July 2021

At Mergence Investment Managers we are reaping the benefits of having attracted and retained quality.. Read more on page 18.

Bridging the Gap: A PPP victory | FM Infrastructure Report – Water Feature

08 July 2021

Mergence, an institutional fund manager specialising in infrastructure and development, including impact investing, is the only fund manager in SA to be invested in the only two water concessions run by PPPs. Siame says partnerships have been formed between the local municipality and the concessionaire, which is responsible for the operation, repairs and management of the water infrastructure as well as water supply, which they either procure from the Water Board or obtain through the production of its own potable water. Read more on page 54 & 56

E-commerce performance gives Prosus more bang for its bucks

22 June 2021

In a small but important step to break the shackles of being regarded as a proxy for Tencent, Prosus delivered a third straight annual profit from its classifieds unit, which helped narrow losses in the broader e-commerce platforms.

Naspers vows to press ahead with share swap, saying minority shareholder concerns are being addressed

14 June 2021

Peter Takaendesa, head of equities at Mergence Investment Managers adds that while some of their concerns have been addressed, there are some corporate governance aspects of the proposed transaction that remain unresolved. We still do not have visibility on how some of the governance matters will be addressed. We will continue to engage on those matters and we hope the Prosus EGM coming up in July will provide another platform for all stakeholders to engage further.

Prosus aims to become a big player in global e-learning market

13 June 2021

Technology investor Prosus is hoping to become one of the largest global players in online education, demand for which has been driven by the Covid-19 pandemic, underlining its intent with a recent R24bn acquisition — its largest to date since inception almost two years ago.

Mergence Multi-Asset View – Fixed Income

11 June 2021

Mergence Multi-Asset View – Fixed Income