Ngoasheng's Nail shares sale an oversight'
--------------------------------------------------------------------------------
CAPE TOWN The sale of 6100 of Safika Holdings executive chairman Moss Ngoasheng's Nail N shares last week was a simple oversight and he had told the Financial Services Board as soon as he became aware of the mistake, he said yesterday.
The 6100 shares were not his entire holding, but the authorities will probably penalise him for the trade as he is a member of a consortium bidding for Nail's assets. Securities Regulation Panel rules permit him to trade his shares during the offer period, but he should have given the authorities notice of the trade and sought their permission.
Safika Holdings is a party in the Tiso consortium. The Tiso consortium offer of R10,50 a Nail share opened on October 2, and has an earliest closing date of October 24.
Ngoasheng's shares were sold at R10,60 each on the open market last Wednesday. There was a speculative surge in Nail's share price last week as the market was under the mistaken impression that the Tiso consortium would raise its offer as a result of the panel's ruling that if Tiso implemented special arrangements with certain parties it had to raise its price to other Nail shareholders accepting its offer to put them in the same position.
But Tiso previously agreed with those parties that if such a ruling was made it would not implement those arrangements, and so it would not offer more than R10,50. As that is its specified offer price, it would not have bought Ngoasheng's shares at R10,60.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
