sabotaged,’ says JSE
Mungo Soggot
The Johannesburg Stock Exchange (JSE) has scotched claims by the directors of Amalia Gold Mining that the company, which is being liquidated after its spectacular collapse, was sabotaged in a hostile take- over bid.
The JSE suspended Amalia Gold Mining on March 5 after the share lost 95% of its value, wiping out the savings of the many farmers who are its minority shareholders. The day before the JSE froze the share, it emerged Amalia directors had failed to disclose that a crucial deal to take control of Liberia’s mineral resources was on the rocks.
The JSE immediately launched an investigation into the company’s collapse, during which directors said Amalia had been sabotaged as part of a hostile take-over attempt. They claimed the company’s former allies in Liberia and employees in South Africa had launched a smear campaign as part of a ploy to take it over. The directors said their enemies had been driving down the share price.
But a representative of the JSE’s listings department said this week: “There was no evidence that someone forced the [share] price down. At this point the company is still suspended because it is liquidated.”
Amalia was put into liquidation shortly after its meltdown on the JSE, after a high court application by Standard Bank, which was owed R7-million. The court appointed liquidator Basil Nel of Coopers & Lybrand.
Nel, who has been probing among other things how Amalia raised and spent its money, said this week Amalia Gold Mining’s largest creditor was a company run by the same directors. The company, Amalia Corporation, loaned money raised by share issues to Amalia Gold Mining, and was now claiming R24-million. It is understood the directors own about 40% of Amalia Corporation.
Amalia has an offshore branch, Commonwealth Gold, which was listed on a small stock exchange in London. ComGold was suspended on the Offex exchange last month after the share plummeted to 2p. Nel said ComGold owes about R4,5-million.
Gerald Potgieter, the only director present at Amalia’s Sandton offices this week, said he could not comment on the JSE’s findings. He said ComGold was suspended on the Offex because of a “technicality”.