Confed sells Anglo shares, offered R88m for property portfolio

Posted On Tuesday, 10 June 2003 02:00 Published by eProp Commercial Property News
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INVESTMENT holding company Confed announced yesterday it had sold its shares in Anglo American in the open market for R8,9m and received an offer of R88,3m from Pangbourne Properties for its property portfolio.

NedcorThe company, which held investments in property and listed shares, is to be voluntarily wound up and delisted from the JSE Securities Exchange SA (JSE) in the next two to three months.

It is an indirect victim of the fallout at BoE in April last year that led to a takeover of the bank by Nedcor.

Commercial Finance Company (CFC), which owned 76% of Confed, was placed under liquidation by Nedcor in December. As a consequence, CFC will apply for Confed's liquidation early next month to try to realise its investment.

Confed chairman and MD John Swain said he and the other directors of CFC and Confed were disappointed about the companies' liquidation as CFC was 88 years old and was first listed on the JSE in 1984. Confed was listed in 1947.

"Both firms have a long history and that's why we are upset we're being liquidated," he said. Both firms had a "superior investment performance" in the past 10 years.

Swain said CFC had controlled BoE, along with BoE management. With the abolition of N shares in BoE, control fell away. But BoE still had a substantial 9% stake in CFC.

"It was at this stage we entered talks with BoE to buy them out of their investment in the CFC group."

In April last year, while negotiating with BoE, there was a run on the bank's deposits. Nedcor then took over BoE. After that, Nedcor and the Byrd Family Trusts had a 70% controlling interest in RNI. The 44% RNI stake in CFC and BoE's 9% gave Nedcor a 53% controlling interest, enabling the CFC liquidation.

 

Jun 10 2003 07:35:58:000AM Nick Wilson Business Day 1st Edition


Publisher: Business Day
Source: Nick Wilson

Last modified on Tuesday, 06 May 2014 08:48

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