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PSV Holdings [JSE:PSV] has terminated its agreement with proposed B-BBEE partner Beryl Holdings following non-payment of a R5m subscription price due by Beryl, the industrial holding company said on Tuesday evening.
In a statement issued via the Stock Exchange News Service, PSV said in order to achieve its B-BBEE objectives, it had instead resolved to sell a percentage of PSV Industrial to a broad-based ownership scheme to establish an ownership trust.
"This sale will be structured to address broad-based ownership for the operating entities of the Group," it said.
PSV, which is listed on the JSE's alternative exchange, is a provider of steel, stainless steel, industrial supplies, specialised control valves, engineering linings, cryogenic equipment and storage tankers.
It also provides technology to the mining, water, waste water management, health care, infrastructure and manufacturing sectors in SA and the rest of Africa.
In September, it announced the B-BBEE transaction with Beryl Holdings, a subsidiary of diversified investment company Beryl Group, which focuses on strategic proprietary investments. Beryl is 100% black-owned and 95% female. Beryl was intended to acquire a 30% stake in PSV Industrial and a further 30% in PSV Asset Co.
PSV added in the September notice that the B-BBEE transaction was subject to a suspensive condition, namely that by October 2018, a subscription agreement between PSV and Regis in June should become unconditional and be duly implemented. The agreement with Regis was not mentioned in the latest update.
Fin24 contacted Beryl for comment on Tuesday evening, but had not received a response by deadline.
