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  • 2 weeks later...

Seems Scam it is: Sagarmatha Technologies will not list on the Johannesburg Stock Exchange on 13 April


On 28 March 2018, Sagarmatha Technologies was given approval by the Johannesburg Stock Exchange (JSE) to list. The listing date of 13 April 2018 would have seen the company become the first Unicorn to list on an African bourse.


On 10 April, the company received a notification from the JSE withdrawing the listing approval. The reason cited by the JSE was non-compliance with Section 33 of the Company’s Act, which requires the submission of financial statements to the Companies and Intellectual Property Commission (CIPC).


On 11 April the company received written confirmation from CIPC indicating that Sagarmatha Technologies was, indeed, compliant and had provided the required financial statements.


The JSE now cites a technical point, which has prevented Sagarmatha Technologies from listing on 13th April 2018. The technicality suggests that Sagarmatha Technologies was non-compliant on the date that the pre-listing statement (PLS) was approved i.e. 28th March 2018. The CIPC has confirmed otherwise, stating that at no stage, was Sagarmatha Technologies not compliant.


Sagarmatha Technologies confirms that it received indicative commitments for this listing exceeding R4bn, therefore comfortably meeting the minimum listing requirements of the JSE.


However, due to the JSE withdrawal of the listing notice, Sagarmatha Technologies is legally bound not to accept these applications from its committed investors. Sagarmatha Technologies was hopeful it could resolve this issue with the regulator and requested the extension of a new listing date. However, the JSE has requested the company make provision for a fresh listing application.


Consequently, Sagarmatha Technologies will not list on Friday 13th April 2018.


The Sagarmatha Technologies board is now considering options that include: offers to purchase from international investors for its four largest businesses; and/or listing on the New York Stock Exchange (NYSE) and Hong Kong Exchange as primary; and/or a primary listing on the JSE and a secondary listing or, and/or a dual listing.


This listing has been the most scrutinized in the history of South Africa, beginning with unprecedented interest in how Multi-Sided-Platform technology companies are valued.


This was further fanned by a large-scale disinformation campaign driven mostly by competitor media houses against Independent Media – a company that would have been under the Sagarmatha Technologies umbrella.


It is apparent that there is a general lack of understanding around MSPs in South Africa. Aside from the comments Sagarmatha Technologies was subjected to when it first announced its listing intention, this lack of insight shows in how the JSE’s largest company, Naspers, trades at a substantial discount as compared to the value of its investment of TenCent in China.


It is for this reason and the fact the company is considering a listing on the NYSE, that Sagarmatha Technologies had the foresight to engage one of the world’s top valuation companies, Redwood Valuation Partners, as well as the esteemed faculty of finance of the University of District of Columbia, both technology experts and specifically familiar with MSPs. Redwood Valuation Partners underwent a stringent process to be accredited by the JSE. The valuation received from Redwood Valuation Partners pegged the share price between R37-R41 per share – and a decision was made to list at a price of R39,62 per share.


Investing in cash negative companies - Sagarmatha Technologies is no different to companies such as Uber, Amazon, Alibaba, SnapChat, FlipKart, Airbnb, DD Chang – all companies that showed substantial losses but whose values were highly valued by the capital markets in which they were listing. It is the very reason why Amazon is today worth $700bn even though its eCommerce business is still only marginally profitable after 20 years and that the top eight MSPs in the world, have a combined market cap of USD4 trillion.


Sagarmatha Technologies is still of the opinion that it is important for Africa to have its own MSP, so that Africans are able to take control of their own technology and data and eCommerce destiny. Regrettably, that next step forward was cut short today.


As with all pioneering moves, boldness is subject to a lot of analysis, and in this case, also vast misunderstanding. This unfamiliarity sadly lent itself to a focus on Independent Media, rather than on the greater picture Sagarmatha Technologies as a whole, represents.


It was the intention of the company to benefit more than three million workers in South Africa, which would have come through the shareholding in Sagarmatha Technologies that included; trade unions, civil society organisations, black entrepreneurs, black businesses, employees and academic institutions. This would have made Sagarmatha Technologies the most representative and largest black-owned listing on the JSE.


Additionally, more than 5 000 young IT professionals would have had the opportunity to be trained in the area of data science, Artificial Intelligence, System Engineering and other MSP technologies.


Sagarmatha Technologies, with its focus on Africa, still intends to give African investors and African business people and consumers, an opportunity to participate in shaping the future African economy. It is also a place for African graduates to hone their skills for the benefit of the African continent.


Sagarmatha Technologies would like to extend its sincere thanks and gratitude to all its stakeholders for their support – shareholders, management, the board of directors, employees, legal advisors, TGR Attorneys; sponsor and transaction advisor, Vunani Capital, accounting firm BDO; asset managers and financial services group, PSG Wealth as well as the JSE.

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From BusinesLive



Sagarmatha’s failure to submit its annual financial statements to the Companies and Intellectual Property Commission (CIPC) was behind the JSE’s decision not to allow it to go ahead with a proposed listing on Friday.


On Wednesday, the company was due to announce the results of a private placement ahead of the Friday listing. However, instead of this announcement, shortly after 6pm the company released a Sens statement, saying that the JSE had decided the listing could not go ahead.


“Regrettably, therefore, due to the JSE’s decision the company cannot continue with the listing on April 13,” said Sagarmatha, which described the JSE’s decision as disappointing.


Sagarmatha’s announcement to the market came more than 24 hours after the JSE told it the listing could not go ahead. No explanation is given for the delay in informing the market of the critical development.


In a letter to the company sent on Tuesday, the JSE explained its reasons for prohibiting the listing.


The company did not submit its annual financial statement to the CIPC at the time when the prelisting statement was approved by the JSE.


This represents a contravention of the Companies Act and therefore of the JSE’s listings requirements.


The JSE said that it was not aware the annual financial statements had not been submitted to the CIPC when it approved the prelisting statement.


Sagarmatha said it received confirmation from the CIPC that it had submitted its financial statements on April 11.


It noted that the financial statements had been included in the prelisting statement and had therefore been in the public domain since late March. Sagarmatha had also failed to release its results for the 12 months to the end of December 2017 by April 9, as had been requested by the JSE.


The results were released on April 10, just hours before the private placement was due to close.


JSE CEO Nicky Newton-King said they had no option but to prohibit the listing when they discovered it was not in compliance with requirements. “When a company applies for a listing it’s required to confirm it’s in full compliance with all its statutory obligations — one of which is compliance with the Companies Act, which requires submitting financials timeously,” said Newton-King. She said the listing had been granted on the wrong assumptions.


Sagarmatha, which is the Nepalese name for Mount Everest, was targeting a minimum subscription of R3bn and a maximum of R7bn. The JSE had previously said that the listing could only go ahead if Sagarmatha made the R3bn minimum target.


Sagarmatha’s stated plan was to become the largest technology platform company on the continent.


Ahead of the listing its businesses include news wire agency African News Agency, online retailer Loot, online classified business IOL Property, online media business Independent Online and Sagarmatha Enterprise Solutions.


The listing on the JSE would have seen Sagarmatha acquire Sekunjalo Independent Media’s 55% stake in the Independent Media group.


Proceeds from the controversial listing were going to be used to acquire up to 15 new companies and grow the existing asset base.


In addition, Sagarmatha planned to repay R1bn of debt.




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  • 2 weeks later...

I saw this posted by Alec Hogg.


In almost four decades observing South Africa’s rich and powerful, today's letter to shareholders of PSG Group by founder and chairman Jannie Mouton sets new standards in terms of brutal honesty. Mouton courageously lays all his cards on the table, explaining that he has been diagnosed in the early stages of dementia.


This extraordinary entrepreneur, whose initiatives include disruptive successes Capitec and Curro, has always held himself to high standards. But in this letter, he takes those to a new level,  surpassing even his famously forthright business hero Warren Buffett, or “die oubaas” (old master) as Mouton refers to him.


Even to those who know him, it will be a surprise to see this deeply grounded 71-year-old billionaire opening up so publicly on one of society’s great taboos. Indeed, Buffett himself has a blind spot on the subject of mental health. After enjoying unrestricted access, biographer Alice Schroder was iced because her bestseller The Snowball referenced the existence of mental health in Buffett’s close family. Mouton, instead, addresses his affliction head on, explaining how this will impact his continued service to the R50bn group he started from scratch at age 49. They sure broke the mould after Jannie came into this world.


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