« More affirmative action muckracking | Main | B&W to buy lightning protection company for R19,2m »
November 24, 2009
Simmers' BEE shareholder taken out of liquidation
There has been much in the press lately regarding the boardroom battles between Simmer and Jack Mines (JSE:SIM) and its BEE shareholder, Vulisango Holdings. However, another dispute involving Simmers and Vulisango has been playing out in the Port Elizabeth High Court, this one related to JCI (JSE:JCD) Limited and the preference shares JCI (JSE:JCD) has in a company called Xelexwa Investment Holdings, formerly known as Jaganda.
In terms of the preference share agreement, a loan claim against Simmers by a subsidiary of JCI (JSE:JCD) in the region of R89 million was acquired by Xelexwa in return for the issue to JCI (JSE:JCD) of 357 million Xelexwa redeemable preference shares. The loan claim against Simmers was in turn capitalised into 357 million ordinary Simmers shares held by Xelexwa and owned by Vulisango, its holding company. It is in terms of this structure that Vulisango currently owns 22% of Simmers.
Posted by StaffWriter at November 24, 2009 9:53 AM