Nafhold to 'devise new plan'

The board of Nafhold, an investment arm of National African Federated Chamber of Commerce and Industry (Nafcoc), had approved the sale of shares to the chamber membership, including its stalwarts, board members and sector affiliates subject to the approval of a deal with Johnnic.

Nafhold chief executive Mike Leaf said following the aborted deal it was business as usual.

He said the awarding of shares to various provincial and Nafcoc sector affiliates would continue but the model of sale would be revised. He added that Nafhold intended to retain its stake in Tsogo Investment Holdings.

Leaf said tensions that might have developed in the past months would be overlooked because the intention now was to work together.

Nafhold has interests in the leisure and tourism sector, gaming, oil and property sectors.

The approval of the Johnnic deal with Nafhold would have given direct shareholding by Nafcoc members at Johnnic.

The estimated R675m Johnnic/Nafhold deal was derailed by HCI, which has since become a 49% shareholder of Johnnic, when it voted against the transaction at an annual general meeting this week.

HCI argued that the deal would have diluted its stake in the group because Johnnic had intended to make available more shares in the market to finance the deal.

Speaking on her resignation, Ramon said the failure by Johnnic to secure shareholder approval of a deal with Nafhold, coupled with HCI's taking over as a controlling shareholder in Johnnic, meant a conflict of strategic thinking.

Ramon said the past few months had been very testing for Johnnic, culminating in an acrimonious relationship.

Ramon added that to ensure a smooth transition, she would continue to honour her fiduciary responsibilities to the board during her six-month period of notice or until such time as a smooth hand-over could be effected.

She had been with Johnnic for 10 years.

Ramon said that she was considering her options, but would continue to serve on the boards of Johncom and Transnet.