Good Morning,

South Africa's GDP is shrinking, Kim Kardashian is a finance bro, investors have been bed, bath and bamboozled and Nigeria continues to lead in creating innovative business solutions.

Headlines

• South Africa's economy has contracted by 0,7% in the past quarter due to a concatenation of events. Record breaking floods in Durban and persistent power outages are said to have proportionally affected growth in our country's productivity. This is of significant concern and experts foresee South Africa's economy entering into a recession very soon.

• Kim Kardashian has announced that she is incorporating a private equity firm with ex Carlyle Group partner. After the success of Kardashians' multiple business ventures she has opted towards the business of funding, scaling and managing other businesses through SKYY Partners.

• Mango Airlines is one step closer to resuming operations after filing for business rescue with the CIPC in 2021. The airlines turnaround plan consisted of finding an investor that can meet Mango's cash obligations of R2,85 billion to creditors and R183 million in unflown ticket liabilities. The SOC recently announced that their preferred bidder has share adequate proof of funds as they make substantial progress within the business rescue process.

Earnings

• Bed, Bath and Beyond's share price has fallen by 18% in the past week after announcing earnings. The consumer retailer company that was saved by meme stock traders has shown significant declines in online and in store earnings. Restructuring plans are set as top level managers try to turnaround the company. Plans include closing down 150 stores.

Quote of the Month

Deal Flow

• Volkswagen wishes to cash in on their stake in Dr. Ing. h.c. F. Porsche AG through the sale of Porsche's preferred shares in an Initial Public Offering. Analysts anticipate a $60 billion to $85 billion valuation in a blockbuster IPO deal. The final decision is yet to be made.

• Shoprite is set to acquire Rhino Cash & Carry, Cambridge Food and more from Massmart in a R1,67 billion deal. This deal is being contested by Spare and Pick n pay as they allege the deal will deteriorate competition in the discounted food stores market.

• BP has sold it's upstream operations and gas interests in Algeria to Eni for an undisclosed amount.

• Metaverse Magna, crypto gaming platform site based out of Nigeria, secured $3,2 million in venture capital funding to scale their WEMIX ecosystem.

• $1,16 million has been invested in a Nigerian energy and transport company called Mobile Power. All On invested in the alternative energy supplier to expand their lithium-ion battery product as a service platform, MOPO. MOPO services underserved homes and microbusinesses by offering 24 hour rentals of their 50Wh - 1000Wh batteries.

Breaking the barrier

Finance Bro is colloquially known as a person that works in corporate finance or investment banking.

P&D (pump and dump) is a form of securities fraud where individuals manipulate the price of securities.

IPO (Initial Public Offering) occurs when a private company wishes to shift into a public company by offering shares to the public for the first time.

Thank for reading, and enjoy your study break !

All the best,

Hlumelo Lujiva💙

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