News & Insights

Commenting on Bloomberg on MTN’s operations in Iran, Peter Takaendesa, CIO of Mergence Investment Managers, highlights that MTN’s problems in that country underscore deeper governance and geopolitical risks facing multinationals operating in sanctioned or politically complex markets. Peter stresses that investors should factor ESG risks more explicitly into valuations, as such events can quickly erode shareholder value and reputational trust. He adds that the situation reinforces the need for boards to act decisively and transparently when navigating international compliance obligations.

Radebe Sipamla, a portfolio manager at Mergence Investment Managers, comments on News24 on Nedbank’s proposed takeover of Kenyan NCBA group. He cautions that Nedbank’s renewed push into the rest of Africa through NCBA’s East African corridor carries both opportunity and significant risk. Radebe also notes that while the strategic logic of gaining exposure to fast-growing African banking markets is compelling, Nedbank’s past experience on the continent shows how quickly regulatory, political and currency challenges can erode value. Radebe also emphasises the need for disciplined capital allocation, strong local governance and realistic expectations about returns. He argues that success will depend less on scale and more on execution, risk management and learning from previous missteps, rather than repeating them in a more complex environment. 

Radebe Sipamla, a portfolio manager at Mergence Investment Managers, is sharply critical of Nedbank’s proposed acquisition of the Kenyan NCBA group, warning that it reflects a poor history of dealmaking. He describes Nedbank’s acquisition track record as “horrendous” and cites its failed Ecobank investment as a prime example of FOMO-driven capital allocation that ultimately destroyed shareholder value. While NCBA has generated returns above its cost of capital in recent years, Sipamla highlights persistently high credit risk metrics, including non-performing loans, arguing these risks raise concerns that the deal could become an “Ecobank 2.0”.

In this article by Ann Crotty on CurrencyNews, Peter Takaendesa, CIO of Mergence Investment Managers, is sceptical of Mr Price’s R9.7bn acquisition of Germany’s NKD Group, warning it risks repeating the long history of value-destructive offshore retail deals. While he acknowledges Mr Price’s management has historically outperformed peers, he argues the problem is the chosen jurisdiction, not deal-making itself. Based on available information, Peter says there is little to distinguish NKD from past failures, though he allows there may be an unrevealed “hidden gem.” He adds that viable growth opportunities still exist in South Africa and says capital should otherwise be returned to shareholders. 

In this article on the benchmarking around the prime rate, Radebe Sipamla, Portfolio Manager at Mergence Investment Managers, argues that while prime is only a reference rate, the debate around it reflects deeper structural issues in South Africa’s banking market. He notes that dominant banks continue to earn high returns on equity, suggesting limited competition despite new entrants. Radebe says the SARB’s renewed review signals recognition that its historically hands-off approach may have allowed incumbents to dominate credit pricing, to the detriment of retail clients and SMMEs. However, he cautions that reducing the repo-prime spread alone will not materially lower borrowing costs. Instead, he believes improved affordability will come mainly from a lower cost of capital driven by lower inflation and interest rates. 

Financial Mail’s annual forward look for stocks always makes for interesting reading. In this issue, Peter Takaendesa, CIO of Mergence Investment Managers, comments on the market and then homes in on a few stocks. He says the local equity market has room to deliver double-digit total returns again in 2026, with falling interest rates and strong export commodity prices vs relatively weak energy prices remaining broadly supportive to earnings growth and the valuation multiple of the JSE. But he cautions that there are potential major risks, including an inflation shock forcing central banks to reverse interest rate cuts, major escalation in geopolitical tensions between the largest global economies and a collapse in AI infrastructure investment. Regarding stocks, Peter gives a three-year view on Naspers/Prosus, ABInBev and AngloGold, Optasia, Absa and Bidvest.

Citywire reports on the news that Mergence and Creation Capital have proposed to purchase JSE-listed Mahube Infrastructure, a holding company owning minority stakes in five renewable energy assets. Mosa Molebatsi, head: private debt at Mergence, was the deal lead.

Business Report runs the announcement by Mergence regarding the offer made to acquire a stake in Mahube Infrastructure which would delist from the JSE. The company holds renewable energy assets which are well suited to the private markets sector. Deal lead was Mosa Molebatsi, head: private debt at Mergence.

Multichoice is locked in talks with Warner Bros on a price for 12 popular channels which the channel stands to lose; the deadline is 31 December 2025. Peter Takaendesa, Mergence CIO, emphasises the importance of retaining good quality international content, especially for non-sports fans. The risk is that subscribers will migrate to competing streaming platforms but Peter says that Multichoice majority shareholder Canal+ may have experience of how to mitigate the potential loss.

Commenting on JSE performance for 2025, Peter Takaendesa, chief investment officer at Mergence Investment Managers, homes in on the TMT sector, pointing out it has outperformed the JSE All Share index’s stellar 37% total return so far in 2025 – one of the few non-resource sectors on the JSE to do so. Peter then unpacks a few stocks, including MTN, Naspers and Prosus.