Mike Bolhuis enters the Orthotouch fray

Endorses 25% Accelerate settlement offer despite it meaning that investors would be destined to receive less than 10% of their original investments.
Private detective Mike Bolhuis. Image: Beeld

Private investigator Mike Bolhuis has endorsed a controversial settlement offer for Orthotouch investors, which may see them lose more than 90% of their original investments in the failed Highveld Syndication (HS) schemes.

Bolhuis is the well-known owner of Specialised Security Services, which offers a range of private investigation services, including, according to its website, investigations into serious economic crimes.

The endorsement appears in a lengthy document entitled ‘Project: Investment Schemes Salvaging Highveld Syndication Investments‘ which was posted on the Facebook page of Specialised Security Services on November 15. The document states that “if you invested in the property syndication scheme known as Highveld Syndication, reading this project will salvage your money and reinstate your investment income”.

The document encourages investors to accept a settlement offer which would see investors receiving shares in the listed property group Accelerate, in place of their original HS investments.

The document has gone viral on social media.

For the full background regarding the history of Picvest and the HS companies, read the following articles:

The peculiar case of the Picvest billions (Part 1) (Background)

The peculiar case of the Picvest billions (Part 2) (Background)

The peculiar case of the Picvest billions (Part 3) (Overvaluation of properties)

The peculiar case of the Picvest billions (Part 4) (Property transactions prior to HS companies being put into business rescue)

The peculiar case of the Picvest billions (Part 5) (Disposal of properties contradicts the intent of the business rescue plan)

The peculiar case of the Picvest billions: Part 6 (The murky sale of 31 ‘Orthotouch Properties’ to Accelerate)

Accelerate is a JSE-listed company. The CEO is Michael Georgiou, the son of property magnate Nic Georgiou, who is the patron and underwriter of Orthotouch. The Georgiou family, via various entities, is also the largest shareholder of the company.

Settlement offer

The Bolhuis document endorses a settlement offer published on the website of the Highveld Syndication Investment Forum (HSIF) on November 12.

The HSIF is linked to Helgard Hancke, a former member of the steering committee of the Highveld Syndication Action Group (the group pursuing the class action), who has seemingly joined forces with Nic Georgiou and is now marketing settlement agreements to investors. 

Hancke declined to speak to Moneyweb regarding the settlement offer, stating that he was “out of town on holiday”. He did not respond to questions that were emailed and WhatsApped to him on Monday. 

According to a document on the HSIF website, the salient terms of the offer are:

  • Former HS investors will receive 25% of their original investments in Accelerate shares.
  • The Accelerate shares to be issued will be at the company’s net asset value (NAV) per share, being R7.50 a share. The NAV is significantly higher than Accelerate’s prevailing share price R1.84 a share.
  • Shareholders will receive dividends “presently calculated at ± 7% p/annum, payable July and December”. 
  • The offer expires on November 30, 2019.
  • (The HSIF document also offers applicants dividend payments payable in December 2018 and July 2019, but this must have been related to a previous offer.)

The HSIF offer acknowledges that the Accelerate share price is low but states it expects the share price to reach “exceptional heights in the next two to three years and the possibility of R10 exists”. 

The Bolhuis document broadly echoes these terms but does not emphasise that despite a statement that investors will only lose 75% of their historic investment, the terms of the offer and the current low share price of Accelerate will result in losses exceeding 90%.

The provisions of the Section 155 Scheme of Arrangement will remain applicable to investors if they reject the offer.

The reality of the Accelerate settlement offer

The reason investors will lose much more than 75% is that the number of Accelerate shares investors will receive is based on Accelerate’s NAV of R7.50 a share and not Accelerate’s prevailing share price of around R1.84. (Accelerate’s most recent financial statements indicate a NAV of R8.09 a share.)

The impact is explained in the tables below, where an original R100 000 investment is used as an example.  

Current HSIF proposal

Original HS investment

R100 000

Offer at 25% of the original investment

R25 000

Accelerate net asset value (NAV) per share

R7.50

Number of Accelerate shares to be issued to the investor

3 333

 

Actual investment at Accelerate share price

Original HS investment

R100 000

Offer at 25% of the original investment

R25 000

Number of Accelerate shares issued to the investor in terms of the NAV per share of R7.50.

3 333

Current Accelerate share price on the JSE (21 Nov 2019)

R1.84

The actual value of 3 333 Accelerate shares at the prevailing share price

R6 133

Percentage investors will receive of their original investment at share price of R1.84

6.13%

In terms of the HSIF offer, an investor would receive 3 333 Accelerate shares if the original investment was R100 000. Investors would then qualify for a settlement of R25 000 (25% of the initial investment) at R7.50 per Accelerate share.

However, Accelerate’s share price at the time of writing the article was R1.84, which means that the value of the 3 333 shares is only R6 133, or 6.13% of the original R100 000 investment.

It is unclear why the Bolhuis document did not highlight this. 

Response

In response to questions, Vaughan Schwartz, national chief specialist investigator: serious economic crimes at Specialised Security Services, said the firm’s endorsement of the offer is based on the NAV. “If the share trading price is used as per your calculation then the recovery is 6%, and the loss is 94%, but my recommendation is based on a net asset value of R7.50 per share as per the share option 1 notice.”

Schwartz said the firm became involved after an investor approach it out of desperation. “He was bombarded with circulars and notices which he did not understand. He tried to get advice from his broker, who wasn’t very helpful and in desperation, he approached Mike Bolhuis, who has a reputation for being the last resort.

“To help him, we had to do extensive research. Once we had finished our research, it became apparent to me that the majority of the investors were probably in the same position as our client and needed help. I then had the project prepared from the research and posted on our public platform. The article aimed to inform the public that Mike Bolhuis is now involved and explain the HS position as simply as possible, with the options as well as our recommendations.”

Schwartz said Specialised Security Services was not paid to publish the document on its Facebook page. “We were not paid to place the project in the media, it is our firm’s policy and civic duty to make the public aware of crime in all its forms, thereby preventing crime.

“This project aimed to assist the public with understanding the HS collapse so they could make an informed decision as to what they should do, mainly with regards salvaging their investment. However, we hoped that the public may come forward, as they usually do, and furnish us with damming [sic] evidence which will assist with criminal charges. We have already had some information from the public which is highly confidential as well as another powerful lobby group has started to exchange information with us and this is only within days of publishing our article.

“We intend to prepare urgent follow-up projects on HS and other investment schemes that we are busy with, as the public needs to be repeatedly warned against risky investments and the devastating consequences,” said Schwartz.

Also read: Georgiou puts Orthotouch and Zephan into business rescue

 

Accelerate Property Fund share price

 

 

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COMMENTS   9

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No one will fall for this. The Appeals Court Decision on 20/11/2019 in which the Class Action was a Friend of the Court: Case of Adv Bolt on behalf of Mrs Moormahomed – 5 judges, 20 minutes and 155 has no bearing on buy-back agreement. Therefore Georgiou will have to pay investors per agreement: Capital, growth plus, plus, plus interest.

Accelerate Property Fund Shares are at an all time low as of: 05th Dec 2019

R1.29!!

Nic Georgiou (Orthotouch /Zephan) and Helgard Hancke (HSBF / HSIF) shame on you for selling these shares as a ‘concrete’ offer to HS Investors – a full and final settlement of their Original Capital Investment!!!

You have valued the shares at R7,50!!

My f@k Marlize…Bolhuis to the rescue! Why after nearly 10 years is he suddenly fighting for investors.
The “project” is a joke and it is clear he does not understand the issue. He was obviously paid to do it.
”In response to questions, Vaughan Schwartz, national chief specialist investigator: serious economic crimes at Specialised Security Services, said the firm’s endorsement of the offer is based on the NAV. “If the share trading price is used as per your calculation then the recovery is 6%, and the loss is 94%, but my recommendation is based on a net asset value of R7.50 per share as per the share option 1 notice.” “… why just cause more confusion by not highlighting the most scandalous aspect of the offer? The fact that Accelerate shares are at x3 the actual value.

Thanks for the article Ryk. After recently receiving an email from the HSIF and reading the offer on their website, I emailed them requesting clarity on the following issues: Why are the shares offered at the NAV and not the current share price? Why offer shares in APF, why not simply pay out the 25% (of original investment) in cash to the investors? Isn’t this just a way to further enrich the Georgiou empire. Needless to say, I have not received any response yet. Maybe Mr Hancke is still out of town on holiday?

Or out hunting for more heads!!!!

“…expects the share price to reach exceptional heights in the next two to three years and the possibility of R10 exists”

Bwahahahaha, pull the other one.

“Schwartz said the firm became involved after an investor approach it out of desperation. “He was bombarded with circulars and notices which he did not understand. He tried to get advice from his broker, who wasn’t very helpful and in desperation, he approached Mike Bolhuis, who has a reputation for being the last resort.”

Is this person crazy, you cannot be serious approaching these guys for anything but muscle, did we not forget that they are more involved with matters that involve Lolly Jackson, Radovan Krechkjir and others not financial matters.

Is this endorsement also maybe an intimidation tactic to others.

This is THE MOST BIZARRE BOLLIE I have heard in a long time!!

Mr Bolhuis, unless you are a Financial Forensic Investigator … I think you are a little out of your depth in this case?! LOL

Ryk van Niekerk has done years of investigation into this sickening Saga…
So have the HAWKS…
and so have Theron & Partners and Advocate Bolt.

And then to top it all, you actually promote a Financial Product (JSE Shares) without researching this saga properly!!!

Are you a Financial Advisor registered with the FSB??

If not, how can you promote something like this??

Ek ruik Bollie!!!

Bolhuis keep your bollie to yourself. Clearly you have NO IDEA what the facts are .Read the history You will not sleep after doing that. So ridiculous.

End of comments.

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