Thursday 16 July 2026 JSE Close: Delivery Hero exit, BHP record iron ore, Karooooo Q1

PRX Prosus locks in Delivery Hero exit at €41.50/share

Prosus has given an irrevocable undertaking to sell its entire remaining 16.8% stake in Delivery Hero to Uber at €41.50 per share, completing a European Commission-mandated unwind from the original 26.5% position first disclosed in the Just Eat Takeaway.com acquisition approval. The price represents a 151% premium to Delivery Hero's pre-announcement one-month volume-weighted average price. The Uber Offer remains conditional on regulatory approvals becoming unconditional, and proceeds are designated for general corporate purposes. The disposal is the final step in a regulatorily compelled reduction programme that began with the April and May partial sales. For Prosus shareholders, the transaction crystallises a meaningful premium on a stake that the company was required to exit, removing the last holding-period overhang from the Delivery Hero position. However, the absence of a disclosed deployment plan for the proceeds means the cash uplift does not immediately translate into a tangible return of capital to shareholders — the value to investors will ultimately depend on how management allocates the funds.

NPN Naspers benefits as Prosus locks in Delivery Hero exit

Through its 73.8%-held subsidiary Prosus, Naspers gains exposure to the irrevocable sale of the residual 16.8% Delivery Hero holding to Uber at €41.50/share — a 151% premium to the pre-announcement VWAP. The disposal completes the final tranche of a European Commission requirement that Prosus reduce its Delivery Hero stake as a condition of approving the Just Eat Takeaway.com deal. The path to this outcome was broadly telegraphed, with prior partial sales in April and May already on the tape and the share having run up 11.2% into Thursday's announcement. Proceeds are earmarked for general corporate purposes, which preserves flexibility but offers no committed return-of-capital signal to Naspers investors. The lack of audited disclosure on the stake's carrying value or the absolute cash consideration means the NAV impact cannot be independently verified from this filing alone. Naspers holders should watch for a subsequent update from Prosus on proceeds deployment before sizing the true benefit of this crystallisation.

BHG BHP delivers record iron ore but flags Jansen impairment and copper guidance cut

BHP reported record full-year iron ore production of 265 million tonnes and held copper output within guidance despite a 3% decline, with realised copper prices approximately 35% higher year-on-year providing a meaningful revenue tailwind. The West Australian Iron Ore division achieved record volumes and the South Flank mine exceeded annual nameplate capacity for the first time — genuine operational positives in a difficult commodity environment. However, FY27 copper production guidance has been stepped down to 1,650–1,800 kilotonnes from approximately 2,000 kilotonnes in FY26, reflecting structural grade decline at Escondida where feed grade is expected to fall from 0.90% to approximately 0.70%. Separately, BHP has flagged a ~US$2.3 billion pre- and post-tax impairment on the Jansen potash project for H2 FY26, a material exceptional charge that will weigh on the income statement and represents new negative information not present in recent prior periods. The Faraday transaction exchanges a producing Arizona copper asset for a minority equity stake, reshaping the copper portfolio without an immediate production uplift. The August audited results will be where the market tests whether the elevated copper price environment and cost discipline are translating into operating cash flow, and whether the Jansen impairment resolves a carrying-value overhang.

KRO Karooooo Q1 subscriber growth accelerates to 19% but free cash flow crumbles to ZAR60m

Karooooo reported Q1 2027 subscription revenue and annual recurring revenue both accelerating to 19% growth, adding a record 142,472 net subscribers in the quarter, with operating profit rising 16% to a record ZAR410 million. The board declared a USD1.50 interim dividend and reaffirmed full-year guidance targeting subscription revenue of ZAR5,700–6,000 million and EPS of ZAR38.50–40.00. The share had already run 26.6% in the 20 days ahead of the announcement, meaning the growth trajectory was largely priced in by the time the results landed. The critical flag for SA investors is the collapse in free cash flow to ZAR60 million from ZAR338 million in the prior-year quarter, an ~82% decline driven by a 62% step-up in IoT device investment to ZAR462 million and a ZAR163 million increase in device inventory held for future use. Working capital also deteriorated, with trade and other receivables rising ZAR202 million and debtor days lengthening to 31 from 27, while net operating cash flow fell 16% to ZAR537 million. The cash conversion gap between rising profits and collapsing FCF is a quality signal that investors should monitor closely heading into H2, when operating leverage will be tested against management's contracting gross profit guidance of 70%–72%.

ISO ASP Isotopes confirms 17.8% dilution in QLE note exchange, ISO falls 11.1%

ASP Isotopes will issue approximately 23.2 million new shares to exchange holders, cancelling $109.2 million of QLE convertible notes plus accrued interest and reducing QLE's note balance from $219.8 million to approximately $110.7 million — roughly a 50% reduction. The exchange is intended to prepare QLE for a standalone public listing and potentially support a future distribution of QLE equity to ASPI stockholders. The 17.8% dilution to existing ASPI holders is the immediate and concrete economic cost of this transaction, confirmed by the share's 11.1% decline to 6829 cents on Thursday. The filing notes that QLE has not applied its enrichment technologies to U-235 and lacks regulatory approval to test U-235 enrichment outside a Necsa services contract — a material caveat on the core commercialisation thesis. Approximately $110.7 million of QLE notes remain outstanding, and the filing omits QLE's cash burn, working capital and audited financials, leaving investors unable to fully assess solvency risk at the subsidiary level. The standalone listing filing is the live catalyst where the market will determine whether the dilution ultimately bought genuine value for ASPI holders.

BAT Brait rights offer conditions met, ZAR2.5bn raise fully underwritten

Brait has confirmed that all conditions precedent to its rights offer have been fulfilled and the ZAR2.5 billion capital raise is fully underwritten, with the extraordinary general meeting passing the share issuance authority by 97.48%. The terms were disclosed in prior filings and the share had sold off 8.8% in the 20 days ahead of the announcement, suggesting the dilution pressure was partially priced. The capital raise removes execution risk and addresses whatever solvency or liquidity pressure prompted the fund-raising, which is a structural positive for the company's going-concern stability. The ~30% expansion in the post-offer share count is the concrete and immediate economic cost to existing holders, and the 25% discount to TERP signals weak price discovery consistent with a raise from a position of need. Investors should watch the post-offer balance sheet — expected after the rights offer closes — to assess whether the proceeds resolve the underlying financial stress or whether the company remains stretched after absorbing the dilution.

What we are watching

Karooooo's next test is H2 FY2027 results where operating leverage will either justify or undermine the subscriber growth investment; BHP's audited results on 18 August will confirm whether the Jansen impairment has cleared the carrying-value overhang; and Brait's post-rights-offer balance sheet will show whether the ZAR2.5bn raise addressed the underlying financial stress or whether further capital work remains.