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Johannesburg - A looming court battle between agricultural services firm Senwes and one of its minority shareholders could delay the group's planned listing on the JSE.
The Treacle private equity group, which holds a 15% stake in Senwes, has made serious allegations in court documents about management irregularities at Senwes, claiming that Senwes and Senwes Beleggings (Senwesbel) contravened the Companies Act.
Senwesbel owns about 39% of Senwes and represents a large number of farmers.
Senwes has disputed these allegations, saying the application is part of Treacle's strategy to unlock maximum value from its Senwes holding before selling its stake when Senwes lists.
This would evidently not be in Senwes's long-term interest.
Senwes earlier said it plans to list on the JSE in the first half of 2011.
Treacle director Rudolf Pretorius, a former Senwes director, claimed in a sworn statement that in 2003 and 2005 Senwesbel illegally bought about 8.3 million Senwes shares from 3 500 minority shareholders.
Senwes had funded these transactions, contravening Section 38 of the Companies Act, which stipulates that a company may not financially support a third party buying its shares.
Pretorius also alleged that the directors withheld critical information about Senwes's improved financial position when these shares were bought.
Some shareholders' shares were apparently also confiscated without the necessary authorisation.
Pretorius also claimed that Senwes contravened Section 85 of the Companies Act by not cancelling all the shares that it bought back, but transferring them to Senwesbel.
He also maintained that shortly after Treacle bought its stake in Senwes in 2006, it became clear that Senwesbel representatives on the Senwes board – led by Japie Grobler, chairperson of Senwesbel and a Senwes board member – were unable to distinguish between their own interests and those of Senwes.
Grobler is highly regarded in agricultural circles and was previously president of Agri SA.
Treacle further alleges that before the Senwes board meetings Grobler held discussions with the Senwes management, thus promoting Senwesbel's interests and prejudicing smaller Senwes shareholders.
Pretorius, who had been a Senwes director during this period, said that in 2009 he had objected and asked for the situation to be discussed at a special board meeting.
A couple of days ahead of the meeting he was fired.
- Fin24.com
The Treacle private equity group, which holds a 15% stake in Senwes, has made serious allegations in court documents about management irregularities at Senwes, claiming that Senwes and Senwes Beleggings (Senwesbel) contravened the Companies Act.
Senwesbel owns about 39% of Senwes and represents a large number of farmers.
Senwes has disputed these allegations, saying the application is part of Treacle's strategy to unlock maximum value from its Senwes holding before selling its stake when Senwes lists.
This would evidently not be in Senwes's long-term interest.
Senwes earlier said it plans to list on the JSE in the first half of 2011.
Treacle director Rudolf Pretorius, a former Senwes director, claimed in a sworn statement that in 2003 and 2005 Senwesbel illegally bought about 8.3 million Senwes shares from 3 500 minority shareholders.
Senwes had funded these transactions, contravening Section 38 of the Companies Act, which stipulates that a company may not financially support a third party buying its shares.
Pretorius also alleged that the directors withheld critical information about Senwes's improved financial position when these shares were bought.
Some shareholders' shares were apparently also confiscated without the necessary authorisation.
Pretorius also claimed that Senwes contravened Section 85 of the Companies Act by not cancelling all the shares that it bought back, but transferring them to Senwesbel.
He also maintained that shortly after Treacle bought its stake in Senwes in 2006, it became clear that Senwesbel representatives on the Senwes board – led by Japie Grobler, chairperson of Senwesbel and a Senwes board member – were unable to distinguish between their own interests and those of Senwes.
Grobler is highly regarded in agricultural circles and was previously president of Agri SA.
Treacle further alleges that before the Senwes board meetings Grobler held discussions with the Senwes management, thus promoting Senwesbel's interests and prejudicing smaller Senwes shareholders.
Pretorius, who had been a Senwes director during this period, said that in 2009 he had objected and asked for the situation to be discussed at a special board meeting.
A couple of days ahead of the meeting he was fired.
- Fin24.com
