Pinnacle Holdings’ share price rose slightly today, as the company released a statement seeking to reassure investors about its actions and those of bribery-accused executive director Takalani Tshivase.
The share was still trading heavily, with about 3,1-million shares having changed hands at the time of going to press. However, the price was slightly better today at about R11,95.
Pinnacle Holdings has released the following statement:
“Shareholders are referred to the previous SENS Announcement dated 25 March 2014 in which it was announced that an executive director, Takalani Tshivhase, had been charged with an offence relating to alleged attempted bribery. In response to public interest, the Company can now further address certain aspects of the matter.
“The company, acting on legal advice, made the announcement immediately that a charge was formally made against Tshivhase. The making of the charge on Monday, 24 March 2014, was the moment at which criminal proceedings were initiated and was the first appropriate time for the company to report thereon. Prior to the bringing of the charge, it was a matter of speculation whether any charge would, indeed, be brought.
“Prior to the SENS Announcement the following sales had been reported on SENS:
* Sale by Carmen Fourie Family Trust of 1,2-million shares;
* Sale by Tshivhase of 200 000 shares; and
* Sale by George Wiehahn of 80 000 shares.
“These sales occurred prior to the bringing of any charge against Tshivhase and therefore prior to the SENS Announcement. Further, it is to be noted in regard to these transactions, that:
* In regard to the first said transaction, same was occasioned by the exercise of an option by a bank (as referred to in a SENS announcement of 14 December 2012) and was therefore a forced sale on the part of the Family Trust of the CEO of the company;
* In regard to the sale by Tshivhase, permission to trade had been requested on 27 January 2014 but on the basis that the trade would only occur after the closed period, which permission was then granted on 10 March 2014, and that sale represents a very small percentage of Tshivhase’s holdings and was related to the need to fund a specific transaction of a personal nature; and
* In regard to the sale by Wiehahn he obtained permission in the normal course.
“The company has received requests from various of its directors to purchase shares in the company and has granted permission for such purchases.
“In the light of the bringing of the charge, Tshivhase has requested the company, and the company has agreed, to grant Tshivhase leave of absence with immediate effect until the criminal proceedings have been concluded at which time Tshivhase’s association with the company can be reviewed.
“The company has previously noted that on the evidence thus far available to it, it has no reason to doubt the veracity of Tshivhase’s denial of the allegations of any impropriety. The matter is now sub judice and the company has been advised that it would not be proper to elaborate further on this aspect of the matter.
