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Nova withdraws controversial listing proposal

Board of Sharemax rescue vehicle fails to provide reasons.

The Nova Property Group has withdrawn a controversial proposal to convert the former Sharemax investors’ debentures into shares and to list the company on the JSE.

The original proposal caused quite a stir last year and failed when Rudi Badenhorst, the company’s financial director at the time, labeled the proposal penned by Nova chairman Connie Myburgh – as “daylight robbery”.

Read: Many questions surround proposed Nova listing

Badenhorst specifically referred to the 43% interest the directors would have received in such a new company, while around 19 700 investors – who collectively invested more than R4.5 billion in Sharemax – would have received only 34.5%.

The directors also did not pay for their original shares in Nova and would have received their 43% for free.

Badenhorst later resigned from the board, as did Dirk Koekemoer. Their remaining shareholding in Nova was stripped of all voting powers, and this gave Myburgh and Haese full control of the company.

Read: SA’s most spectacular case of corporate capture

During the failed debenture holders meeting held last year, Myburgh undertook to amend the proposal and to repitch it to investors. However, the board informed debenture holders on Monday that it has withdrawn the proposal and cancelled a meeting scheduled for 26 September. No reasons were offered as to why the proposal was withdrawn.

Nova response

Dominque Haese, Nova’s CEO, also did not respond to emailed questions to provide some clarification.

The Nova board terminated communication with Moneyweb since Moneyweb fought for three years to gain access to the company’s shareholder register, which later revealed that the board received 97% of Nova for free.

At the time Haese sent the following statement to Moneyweb:

Dear Mr van Niekerk,

It is regrettable that our efforts in engaging Moneyweb openly, constructively and in a bona vide fashion has not been reciprocated. In response Moneyweb has chosen to publish articles without prior reference to us, and in breach of your undertaking to allow us to see and comment on the articles first, which articles twist the facts, articulate a number of inaccuracies and untruths and seek to slander and defame the Nova Group and its directorate. We are considering our position and our rights in this regard are reserved.

It has become clear to us that any information that is provided by us to Moneyweb, will be twisted and used out of context for the purpose of further negative reporting of and concerning the Nova Group and its directorate and given that no further productive purpose would be served in engaging with Moneyweb, the Nova Group has decided to break off all forms of communication with Moneyweb.

 We will accordingly no longer respond to questions Moneyweb pose to us, requests for commentary on proposed articles or for that matter to any articles that Moneyweb might publish, subject of course to a reservation of the right to deal with any matter Moneyweb might publish, in a court of law. 

Please ensure, should you elect to publish anything further regarding the Nova Group and any of its functionaries, that you include in such publication our above position, verbatim.

Yours faithfully,

Dominique Haese

CEO Nova Property Group

AUTHOR PROFILE

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The side-track idea of listing the controversial properties of Nova was still-born in any case and have no potential to ever succeed. It’s only in a corrupt Africa country that two whiteys can continue to get away with “daylight robbery” on this scale for so long. The S.A. Reserve Bank, the Public Protector, the DTI, CIPC and the Hawks have all turned a blind eye to this R6 billion scam. Daylight piracy do not discriminate between greed, race or tribal heritage and for as long as it is not vehemently challenged in government, SOE’s and in the private sector, it’s no wonder S.A. is in the sad state it finds itself.

I agree totally Schocking but not unexpected Same recipe used in failed syndication scams repeating itself Directors enriching themselves with shares by not paying for it in hard cash Would be interesting to know how Accelerate directors paid for theirs especially Mr Georgio

End of comments.

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