A hearing into an application by the Kagiso Consortium to restrain the Tiso Consortium from implementing a series of transactions to purchase shares in New
Africa Investments Limited, which Kagiso contends amounts to an unlawful merger, will continue before the Competition Tribunal next Wednesday.
An application for an urgent interdict was dismissed by the by the Tribunal on October 13 on the grounds that it would not be effective, pointing out that Tiso had already bought up to 81,9% of Nail’s N shares and 31,8% of its ordinary shares — making it too late to be remedied.
Kagiso, which is engaged in a bidding war with Tiso for Nail’s assets, applied for an urgent interdict on the basis that the transactions by Tiso to purchase shares in Nail constituted a scheme by Tiso to implement a merger with Nail. Kagiso claimed that the scheme is unlawful because mergers may not be implemented until they have been approved by the relevant competition authority.
Tiso denied that its scheme constitutes a merger and alleges that it was under no obligation to notify.
In the interim the Competition Commission ruled that the merger was notifiable and the merger has subsequently been notified with the Competition Commission.
The Kagiso Consortium comprises Kagiso Media, Johnnic Communications, Caxton and CTP Publishers and Printers, while the Tiso Consortium comprises Tiso Capital, Investec, Mineworkers Investment Company, Safika — which is the majority stakeholder in Nail — and Capricorn. – I-Net Bridge