Is Resilient’s BEE deal a front?
Mergence report adds to woes of property group already reeling from accusations of insider deals
The Resilient group, which until two months ago constituted 40% of the JSE’s entire property index, faces damaging new allegations that its empowerment scheme may be little more than a well-orchestrated attempt at fronting. This is a key contention in a research report released this week by Mergence Investment Managers, which manages R30bn in pensions and institutional money. It’s the last thing that Des de Beer, the former banker who in 2002 founded the group that now consists of Resilient, Fortress, Nepi Rockcastle and Greenbay, would want. This year, widespread scepticism over the group has resulted in share prices falling 56% for Resilient, 62% for Fortress B shares, 47% for Greenbay and 36% for Nepi. Largely, this is because after Steinhoff’s collapse in December, a number of investment firms — 36One, Arqaam Capital and Navigare Securities — raised red flags, arguing that the share prices of the firms had been artificially boosted by a complex series of insider deals. De Beer h...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.