Breaking-down the ART-Softex-Nampak deal: additional costs in the US$ 800k transaction

Author Name
Rugare Mukanganga
Author
Personal Finance 1 month ago

A quick look at the May 5th 2021 Nampak-Softex-ART US$ 800k announcement reveals some addtional costs involved between the transacting parties, costs one might not immediately consider on hearing about the Softex sale.


        Central Bank

  • All funds in the transfer are reportedly due electronically, with payments spread out over six equal monthly installments

    Implication

Each transfer is subject to a 2% Intermediate Money Transfer Tax (IMTT). Assuming monthly US$ installments of US$ 133,333.3 , the transfers face a flat IMTT fee of US$ 2,000, adding at least US$12,000 to ART's Softex bill.

 

           ZSE

  • "There are transaction costs which are charged on each and every purchase and sale transaction and the charges are currently as follows..."

    Implication
Fee ART (Buyer) Nampak (Seller)
     
Brokers Commission 0.92% 0.92%
VAT (14.5% of brokerage) 0.13% 0.13%
CSD Levy 0.10% 0.10%
Stamp Duty 0.25% -
ZSE Levy 0.10% 0.10%
SECZ Levy 0.16% 0.16%
Investor Protection Levy 0.03% 0.03%
Capital Gains tax - 1%
     
Total 1.69% 2.44%

Table adapted from https://www.zse.co.zw/faqs/

 

Note to traders and investors

The two sets of (additional) expenses listed above are examples of some additional costs involved in the acquisition and sale of assets in Zimbabwe. One should always carry out detailed research and factor in such issues in their overall decision making processes. 


Stock Market ● 1 week ago
Market heavies weigh down ZSE, halts record breaking trend

Along with global shares, the ZSE plunged in mid-week trades following 8 straight sessions of record-breaking momentum out of the recent 12 consecutive sessions in which the market has been in positive territory. Rally was halted by market heavies which shed -1.73%, countering the gains from small caps. The losses were, however, largely fueled by 2 factors which include reduced demand post 2 w...


Stock Market ● 1 month ago
Stocks continue in losses but selloff fizzles

The local bourse extended losses to a 3rd straight session, pulling down weekly performance into the red as investors took profits. Before the setback the bourse had enjoyed a rare 10-day rally over which gains went past the 20% mark, highlighting one of the best-performance in the bourse’s recent history. The ZSE All Share Index fell by a further -1.62% to close the latest session at 5382.47...

Stock Market ● 1 month ago
Production Slide Continues at Border Timbers

The forestry & sawmilling specialists reported a second consecutive quarterly production volume declines. The drop in output was a continuation of production bottlenecks in the previous quarter, bottlenecks brought-about by market-wide Covid-19 disruptions.   Highlights for the Quarter (FY-20 Q3) Total Production Volumes ⬇️ 26% Sales Volume ⬇️ 25% Revenue ⬇️ 28%   Lumber increased its o...

Stock Market ● 1 month ago
Depressed Consumer Spending Hinders BAT Segment Performance

Tobacco retail and distribution company BAT posted 3% growth in sales volumes for the quarter ended March 2021 (FY-21 Q1). This on the back of a 12% sales volume decline at the end of 2020. Prevailing economic conditions driven by a Q1 Covid-19 lockdown however dragged sales in the period down.Q1 Highlights Market return of Dunhill  Dunhill sales up 91% Net Turnover up 75%   Premium brand Dun...

Stock Market ● 1 month ago
Balance Sheet Preservation Key In FBC FY-20 Performance

Recently released FY-20 financials revealed a mixed set of gains and losses by the Holdings Group, following a roller-coaster 2020 dominated by inflationary pressure and Covid-19 disruptions.  Highlights Cash & equivalents down 57% Asset Base up 19% Optimistic FY-21 outlook  As has been the trend in FY-20 banking industry results, listed financial institutions have sought to safe-guard ba...