Transnet and the government are facing an R8-billion legal claim from prominent businessman Sandile Zungu over a soured deal involving the sale of 80-million shares in cellphone company MTN, Business Day reported on Friday.
The dispute arose after Transnet said in April 2004 that it had picked Zungu’s Umthunzi Telecoms from 10 other bidders to buy the shares — equal to 5% of MTN’s total shareholding — from Transnet.
Zungu said he ”shook hands” with the government in 2004 over a deal that would have seen Umthunzi pay R29,51 for each MTN share.
Of this, 75-million of the shares were held through the M-Cell trust in Transnet’s ailing Second Defined Benefit pension fund, which last year still had a deficit of R4,8-billion, the Business Day report said.
However, the government backed out when the MTN share price rocketed, and the parastatal apparently realised it could make more money by selling the shares in the market.
In February last year, Transnet simply sold the shares for R65 apiece in the market, making itself R5,2-billion in the process, and it seems neither Public Enterprises Minister Alec Erwin nor Transnet CEO Maria Ramos seriously believed Zungu would take the matter to court.
However, papers were served on the government and Transnet on Wednesday, setting the stage for what is expected to be a groundbreaking lawsuit. — Sapa