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Toshiba shares fall 20% after it flags one-off loss

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TOKYO: Toshiba shares dived more than 20 percent on Wednesday in their second straight double-digit plunge, as the company said it may book a one-time loss of several billion dollars over its US nuclear business.
The stock price dropped by 20.42 percent to 311.60 yen, the largest fall allowed for a single day, about 30 minutes after the opening bell, as the company failed to ease investor worries over the potential risk. It finished the session at that level.

On Tuesday the Tokyo-based conglomerate said in a statement that costs linked to the acquisition last year by its US subsidiary of a nuclear service company would possibly amount to “several billion US dollars, resulting in a negative impact on Toshiba’s financial results”.

The exact figure of the potential write-down is still being worked out, Toshiba president Satoshi Tsunakawa told reporters after the announcement, apologising for “causing concern”.

The company statement suggested the figure would be released soon, citing an end-of-year deadline for settling the valuation of the nuclear deal.

The announcement came after Toshiba shares closed nearly 12 percent lower on Tuesday on media reports about the potential loss.

Analysts said uncertainty was fuelling investor anxiety.

“Concerns have yet to be cleared away as they said they didn’t know the figure,” Yukihiko Shimada, senior analyst at SMBC Nikko Securities, told AFP.

SMBC Nikko credit analysts Yutaka Ban and Kentaro Harada said in a report that investors “can’t be optimistic about the situation” even though the total write-down may not end up as big as the 500bn yen ($4.3bn) reported by local media.

Nomura Securities analyst Masaya Yamasaki said in a report issued late Tuesday that the expected loss “is negative for the company as its financial standing is fragile”.

Tsunakawa at the press conference answered in the affirmative when asked if Toshiba is considering boosting capital.

Chief financial officer Masayoshi Hirata said that after the figure is confirmed the company will “explain and seek support” from financial institutions.

Toshiba said the possible loss was related to the valuation of the purchase by subsidiary Westinghouse Electric of the nuclear construction and services business of Chicago Bridge & Iron.

Westinghouse and Chicago Bridge & Iron have turned to an independent accountant to resolve a dispute over differences in asset valuations, Toshiba said earlier this year.

Toshiba said Tuesday the potential write-down would “far exceed” the $87m first expected, resulting in a “far lower asset value than originally determined”.

Toshiba’s latest full-year forecast is for annual net profit of 145bn yen ($1.24bn), up 45 percent from an earlier estimate, on sales of 5.4tn yen.

But Tuesday it said it would release a revised earnings forecast as soon as possible to reflect the coming write-down.

Toshiba’s nuclear woes are the latest blow to the once-proud pillar of corporate Japan.

It has been besieged by problems, most notably a profit-padding scandal in which bosses for years systematically pushed subordinates to cover up weak financial results.

In an intensive overhaul, the company has been shedding businesses and announced the sale of its medical devices unit to camera and office equipment maker Canon.

Investors had welcomed the makeover, with Toshiba shares having climbed 77.3 percent this year through Monday.

Tsunakawa was appointed president earlier this year to steer Toshiba past the accounting scandal that has dented its reputation.

Source: AFP

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Nissan SA’s Whitfield given Egypt portfolio

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CAPE TOWN – Nissan South Africa and sub-Saharan Africa managing director Mike Whitfield has been appointed managing director of Nissan Motor Egypt.

The Japanese-based group said yesterday that Whitfield would also serve as chairperson of Nissan in Africa South as it announced changes in its senior management structure in Africa to drive growth.

Africa is seen as the last frontier for global carmakers. The group said Whitfield would be based in Cairo and his appointment would be effective from June 20.

Whitfield, a former president of the National Association of Automobile Manufacturers of South Africa and vice-president of the African Association of Automotive Manufacturers, joined Nissan in 1981 as a marketing trainee.

Since then he has held a variety of senior positions before being appointed as Nissan SA’s managing director in 2008. “Under his leadership, Nissan posted a record market share in South Africa of more than 10 percent in the last financial year, the highest this century,” the group said.

It said Shinkichi Izumi would succeed him as the managing director of Nissan South Africa.

“Nissan has a plan for rapid and sustainable growth in Africa. We were the first to assemble cars in Nigeria and our ambition is to lead the way in developing automotive manufacturing on the continent,” said the chairperson of Nissan’s Africa, Middle East and India region, Peyman Kargar.

BUSINESS REPORT

 

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Smile Telecoms Appoints Ahmad Farroukh As New Group Chief Executive Officer

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Irene Charnley, founder of Smile, appointed as Deputy Chairman

PORT LOUIS, Mauritius, May 21, 2019 – Ahmad Farroukh, Smile Group Executive Director Operations, appointed as Group CEO; Irene Charnley, founder of Smile, appointed as Deputy Chairman.

Smile Telecoms, a Pan-African telecommunications group with operations in Nigeria, Uganda, Tanzania and the Democratic Republic of the Congo, today announces the appointments of Mr. Ahmad Farroukh as Group Chief Executive Officer and Ms. Irene Charnley as Deputy Chairman, respectively, effective 1 June 2019.

Ahmad Farroukh, who currently serves as Smile’s Group Executive Director Operations, is a seasoned and experienced telecoms executive with a distinguished record of commercial and operational success. Mr. Farroukh’s vast experience extends to executive management positions at Investcom Holdings and the MTN Group (where he served as CEO of MTN Nigeria, MTN South Africa and Group Chief Operating Executive, responsible for 19 countries) and immediately prior to joining Smile, as CEO of Mobily, Saudi Arabia’s second largest telecommunications operator. Given the extent of the opportunity and the significance to Smile, Ahmad will spend the majority of his executive time in Nigeria.

Hailed as one of Africa’s most successful business leaders, Smile Telecoms founder and shareholder, Irene Charnley has led the Company’s innovation and pioneering of Africa’s first 4G LTE network infrastructure, using low band spectrum in 800MHz band. thereby revolutionizing the way people in Africa accessed high speed internet. After 12 years at the helm, Ms. Charnley will now serve as Deputy Chairman for the Company and will fulfil a strategic role.

Commenting on the announcement, Mohammed H. Sharbatly, Smile’s Co-Chairman and Group CEO of Smile’s majority shareholder, Al Nahla Group of KSA, said “The Africa telecoms market is as dynamic as it is challenging, and Ahmad is suited to lead Smile’s next exciting phase of growth, as we have transitioned from a spectrum rich upstart to the fastest, most reliable data gigabyte factory in Sub-Sahara Africa. We are equally delighted that Irene will continue to serve the company she founded as Deputy Chair, and we look forward to her ongoing strategic direction and guidance.”

“The next phase for Smile will focus on delivering excellent operational returns, achieving profitability and creating value for all stakeholders, and I believe that Ahmed is best suited to lead the Company forward in this regard”, added Irene Charnley.

“Africa is experiencing explosive data growth, and I am honoured to have the opportunity to lead the operations of one of the continent’s best 4G LTE networks at this exciting time. It has also been a revelation after over 20 years in the industry to witness the power and versatility of Smile’s proprietary technology applications platform, which was developed in-house and provides a huge competitive and cost advantage,” concluded Ahmad Farroukh.

Smile Telecoms Holdings Ltd.

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General Electric appoints Eric Amoussouga as GE Francophone Africa CEO

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Eric is also Sales Director for GE’s Grid Solutions Business across Sub-Saharan Africa

ABIDJAN, Ivory Coast, April, 2019 — General Electric (GE) has announced the appointment of Eric Amoussouga as the Chief Executive Officer for Francophone Africa. In this position, Eric will play a pivotal role in steering the next phase of strategy and growth for GE in Francophone African markets.

Based in Abidjan, Eric will lead the development of diverse programs with public and private sector projects and partnerships across Francophone Africa.

Commenting on the appointment, Farid Fezoua, President and CEO, GE Africa, reiterated GE’s commitment to work together with government and private sector order to develop public private partnerships and sustainable outcome-based solutions.

“We are optimistic about Francophone Africa and the opportunities to develop breakthrough solutions in power, healthcare, aviation and renewable energy. We believe that the appointment of Eric is a further step in making our vision a reality. We are also glad to bring on board someone with the experience and passion required to drive our growth in this region,” he said.

Eric brings onboard 19 years of experience in the energy sector with the major players like AREVA, ALSTOM and GE and has strong expertise in energy business development and sales strategy especially in West and Central Africa.

“I am very excited to be leading GE’s regional growth in Francophone Africa and driving innovative initiatives to support the needs of GE stakeholders within the region.” Eric Amoussouga said.

Partnership with Governments and local companies form a very important part of GE’s growth in Francophone Africa and across the continent. Through these collaborations, GE has made significant investments to develop infrastructure projects, including sustainable energy solutions, provide efficient and reliable transportation as well as improve access to quality healthcare.

– GE

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