Novus Holdings, a printing and packaging firm, said on Friday it will urgently appeal a decision by the Takeover Regulation Panel (TRP) to withdraw approval of its firm intention announcement (FIA) for a mandatory offer to buy shares in technology distributor Mustek Limited.
The TRP had initially approved the FIA on November 15, 2024, but reversed its stance, prompting Novus to criticise the move as "improper." The regulator has directed Novus to issue a revised announcement within 20 business days, a development the company said could cause "unfortunate impact and confusion" for shareholders.
"Novus intends to appeal against the aforesaid ruling of the TRP on an urgent basis," the company stated, adding that it "remains fully committed to the mandatory offer process and implementation thereof in accordance with its obligations."
The dispute follows a February ruling by the TRP, which found that the DK Trust, a significant Mustek shareholder, acted in concert with Novus in the proposed R13-per-share offer. The TRP concluded that the Trust’s undertaking not to sell its shares until the offer closed was "a critical enabler" of the bid, raising concerns over compliance with takeover regulations.
Novus, listed on the JSE, said it disagreed with the TRP’s grounds for withdrawal and would update the market as soon as possible. The company also affirmed that the information in its announcement is "true and correct" to the best of its knowledge, accepting responsibility for its contents.
Novus's shares on the JSE on Friday closed unchanged at R7, while Mustek's share fell 1.1% to R13.50.
BUSINESS REPORT