RICH GET RICHER

Perhaps I am missing something here, but isn't the whole idea behind owning your own business and becoming successful also about the money side of things? Isn't that what being a capitalistic free enterprise country all about? Why on earth wouldn't they become richer? You say it like it's a bad thing! I say well done guys! You Rock!

Rich get richer
March 11, 2007B
By Wiseman Khuzwayo and Mzwandile Jacks

Johannesburg - It is a fact: the rich are getting richer and yes, more black businessmen are joining the list of the super-rich in South Africa. This is according to the 27th edition of Who Owns Whom in South Africa, published this week. The respected financial handbook lists the top 50 directors by value of their JSE shareholdings and for the first time it lists the bourse's winners in terms of the increases in the value of their shareholdings.

The combined value of the shares held by top 50 directors was R105.91 billion, 3 percent of the total market capitalisation of the JSE when the data was compiled in June. The top three richest directors on the JSE remained the same as in 2005: Lakshmi Mittal, effective owner and a non-executive director of Mittal Steel South Africa, holds 52.02 percent of the firm's shares - the stake is worth R14.68 billion; Nicky Oppenheimer, a non-executive director of Anglo American with 3.98 percent of London-listed Anglo American, is worth about R14.09 billion (his interest in delisted De Beers is not included); and Johann Rupert, a director of the Rembrandt Trust, whose 35.5 million B shares in Remgro and Venfin (since delisted) are valued at R8.59 billion.

Patrice Motsepe has moved up from eighth to fourth with a fortune of R7.94 billion - made up of a 42.7 percent stake in African Rainbow Minerals and his interest in the 9.38 percent holding of the Ubuntu-Botho empowerment grouping in Sanlam.

Three black newcomers joined the top 50 super-rich. These were Saki Macozoma, a non-executive director of Liberty Group and Standard Bank, whose wealth is estimated at R519.64 million; Cyril Ramaphosa, the chairman of the Shanduka Group, whose shares are valued at R490.53 million; and Marcel Golding, the Hosken Consolidated Investments chairman, with R360.87 million.

Who Owns Whom said its assessment of the country's wealthiest used the value of beneficial ownership of shares on the JSE. It did not take into account privately held assets and it did not take into account debt owed on shareholdings. The publication said shareholdings were sourced from public documents published in electronic and hard copy in terms of the Companies Act and JSE listing requirements. The data was extracted by the research staff of Who Owns Whom. Shareholdings included those held via trusts where this was deemed appropriate.

The holdings of each director were sent to the respective company secretary for corroboration and updating. The list of increases in value of shareholding in the past 12 months is headed by Tokyo Sexwale, the executive chairman of the Mvelaphanda Group. It shows an astounding 275.1 percent rise in his wealth to R979 million last year. The 2007 edition of Who Owns Whom includes, for the first time, Sexwale's 16.9 percent share of Mvelaphanda Group valued at R673.7 million.

Andrew McGregor, the managing director of McGregor Information Services, said as Mvelaphanda had only listed in December 2004 when it reverse listed into Rebserve, details of its shareholdings had not been included in last year's edition. He conceded that Sexwale would then have been worth more than the R261 million attributed to him last year and the amazing growth attributed to his wealth in the 2007 list had been overstated. Which leaves Brian Joffe at the top with a 261.2 percent rise in the value of his shares from R273 million in 2005 to R986 million last year, almost all of it emanating from Bidvest.

At the bottom of increase in value list, the wealth of Claas Daun, the non-executive chairman with 47.07 percent of Kap International Holdings, fell by 13.3 percent to R826.9 million. Walter Grindrod, the non-executive chairman of Grindrod, reduced his 27.8 percent holding to 16.9 percent, shaving 3.6 percent off the value of his shares from R1.13 billion to R1.06 billion, which benefited from stock price rises.Who Owns Whom first published its list of the super-rich last year when the total market capitalisation of the JSE was R2.89 trillion.

Bruno Steinhoff, the executive chairman of Steinhoff International, increased the value of his shareholding by 124 percent, from R1.6 billion to R3.6 billion.The furniture and household goods manufacturer this week announced it had posted good interim results, with revenue up from R17 billion to R19 billion.Headline earnings grew 33 percent, from R856 million to R1.1 billion. Headline earnings a share increased 32 percent to R1 from 76c the previous year.

This week also saw the share prices of Steinhoff and JD Group, South Africa's largest furniture retailer, surge as a result of the proposed merger between the two companies. A merger would result in Steinhoff, with a market capitalisation of more than R31 billion, being the controlling shareholder in the merged entity.

The value of shares held by Maldwyn Zimmerman, the executive chairman of Combined Motor Holdings (CMH), in the company surged 118.1 percent, worth R986 million last year. It is stated that his shareholding was worth R452 million in 2005, lifting Zimmerman from the 21st position to seventh in the list of top 50 JSE directors. Zimmerman's shareholding shot up to 43.28 percent. The value of shares held by Jebb McIntosh, the chief executive of CMH, lifted 118.7 percent, worth R549 million last year. This has moved him from position 31 to position six in the Top 50 list. His shareholding went up to 24.07 percent in the company.CMH said the rise in shareholdings was due to share price increases, which were considerable during the year.

The value of shares held by Jannie Mouton, the chairman and founder of financial services company PSG, increased by over 140 percent in the past 12 months.Mouton's shareholding was R279 million in 2005. But it has surged to R670 million, elevating him to the fourth position of the Top 50 directors. Last year he was 27 on the list. Mouton, as an executive of PSG, owns 15.43 percent, which is worth R432.08 million. As non-executive chairman of Capitec Bank, Mouton has a 10.41 percent shareholding valued at R232.02 million. PSG said the increase could be attributed to shares obtained through the merger with Arch Equity, further shares acquired in terms of PSG's rights issue, and additional shares acquired in the market.

The value of the shareholding of Brian Joffe, the chief executive of Bidvest, shot up exponentially in the past 12 months, coming second in the top 50 list of directors after languishing in the 23rd position in 2005. The value of Joffe's shareholding rose 261.2 percent last year. His JSE investments were worth R273 million in 2005 but surged to R985.91 million last year. As chief executive, Joffe has a 2.59 percent holding, which is worth R985.62 million.Joffe was said to be "out of town" on Friday. However, the company's latest results showed that Joffe owned 3.8 million indirect and direct shares in Bidvest.

Patrice Motsepe, the mining magnate and chairman of African Rainbow Minerals (ARM), increased the value of his shareholding by 178 percent, from R2.8 billion to R7.9 billion. Andre Wilkins, the chief executive of ARM, said this was in line with firm's results in the six months to December, which saw ARM report a 318 percent rise in headline earnings to R548 million for the six-month period. ARM's rise in value and profits reflects the increase in prices of platinum, manganese alloys and nickel, as well as new projects coming on stream. Motsepe said a dividend would be paid in due course.