The JSE on Tuesday announced that it has imposed a censure on Invicta Holdings after finding that it breached requirements through the purchase of Invicta shares by its subsidiary without the required authority to do so.<\/p>\n
On November 30 2015 Humulani Marketing, a subsidiary of Invicta, acquired 1 880 000 shares in Invicta from the company\u2019s directors, Charles Walters and Arnold Goldstone and their associates, explained the JSE.<\/p>\n
The shares were approved by shareholders at Invicta\u2019s annual general meeting on September 4, 2015.<\/p>\n
\u201cDespite such repurchases having been effected through the order book operated by the JSE trading system, a prior understanding or arrangement between Humulani and the directors existed, contrary to the provisions of paragraph 5.72 (a) of the listings requirements,\u201d the JSE disclosed.<\/p>\n
\u201cThe JSE has decided to impose this public censure against the company in relation to the above-mentioned breach of the listings requirements.\u201d<\/p>\n
Invicta anchor investor and chairperson Christo Wiese was asked about the share irregularity at the AGM in September 2016. According to Financial Mail, he responded: “What sort of detail do you want… what more do you want to know?”<\/p>\n
“We immediately put the matter right without prejudice to the company,” he told shareholders.<\/p>\n
Invicta said in a statement on Tuesday that it \u201cimmediately on becoming aware of the breach of the listings requirements, notified the JSE and its auditors Deloitte & Touche of the breach\u201d.<\/p>\n
\u201cThe relevant transactions were cancelled and the company reimbursed with each and every cost related to the matter, including all transaction costs, interest and legal fees, thus placing the company back in the position it was before the transactions occurred.<\/p>\n
\u201cIt is further noted that the company and the directors concerned fully cooperated with the JSE in this regard.\u201d<\/p>\n
On August 25 2016, the Financial Mail reported that Invicta \u201cmade key changes to its executive team, reinforcing faith in the executives who appear to be mixed up in a reportable irregularity\u201d.<\/p>\n
A fast-growing company, Invicta is the owner of Bearing Man and has increased its revenues from R365m in 1997 to R10.2bn in 2016. However, 80% of this comes from the troubled agricultural sector. In 2016 its pretax profit was down 27%, due to higher costs.<\/p>\n
Invicta\u2019s share price was trading at R56.55 before trade opened on Tuesday, with a price to earnings ratio of 15.75.<\/p>\n
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