Nedbank may have to shell out billions for rules breach
Nedbank may end up several billion rand out of pocket, and Old Mutual may see potential bidders for its 52% stake in the bank scared off, thanks to a possible breach of Securities Regulation Panel regulations. Business Day reports that Nedbank may be required to make a retroactive offer to buy shares in Acc-Ross, a troubled developer of golf courses, at R1 a piece. The shares currently trade at four cents each.
Nedbank ended up with a big stake in Acc-Ross, pretty much against its will, but in doing so crossed the crucial 35% ownership level. At that stage it it triggered a requirement to make an offer to buy all other outstanding shares, something it now says happened unwittingly. If the SRP does not condone its failure after the fact, it can force a retroactive offer. Business Day