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Trustco’s urgent application against suspension successful in SA High Court

Trustco’s urgent application against suspension successful in SA High Court

Trustco received a lifeline from the High Court of South Africa earlier this week when the court allowed its urgent application to prevent the Johannesburg Securities Exchange to suspend Trustco’s listing due to alleged accounting irregularities.

Trustco’s brief victory resulted in a blip in the share price which is otherwise under heavy pressure from investors. On Friday 05 August, the Trustco share price was still only 45 cent but on Monday 08 August, the day of the High Court verdict, it closed on 61 cent and managed to maintain this level to Thursday morning. However, an unknown investor was still short-selling the stock, as has been the case for the past two years, with a buy offer of 44 cent. This created an unusually wide spread on the stock, which may impede any further gains from the court victory.

On 03 January 2020, Trustco traded at R16.00 but from there the stock assumed a downhill trend that lasted more than two and a half years.

Trustco was elated over buying itself a little more time in its battle to stop the JSE from suspending its listing, citing in a statement the reasons for the High Court’s judgement.

Reminding Trustco’s counsel that this was just an urgent application to prevent suspension, the judge stated “The grounds of review are all deserving of a proper hearing in due cause and I am satisfied that Trustco has asserted a prima facie right to fair and just administrative action.”

In a statement issued after the judgement, Trustco indicated that it will take civil action against those parties it deems responsible for its dispute with the JSE, and the subsequent destruction of shareholder value through the decline in its share price.

The JSE was ordered to pay the costs of the urgent Court application, including the costs of two counsels.


 

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About The Author

Daniel Steinmann

Educated at the University of Pretoria: BA(hons), BD. Postgraduate degrees in Philosophy and Divinity. Publisher and Editor of the Namibia Economist since Febreuary 1991. Daniel Steinmann has steered the Economist as editor for the past 31 years. The Economist started as a monthly free-sheet, then moved to a weekly paper edition (1996 to 2016), and on 01 December 2016 to a daily digital newspaper at www.economist.com.na. It is the first Namibian newspaper to go fully digital. He is an authority on macro-economics having established a sound record of budget analysis, strategic planning and assessing the impact of policy formulation. For eight years, he hosted a weekly talk-show on NBC Radio, explaining complex economic concepts to a lay audience in a relaxed, conversational manner. He was a founding member of the Editors' Forum of Namibia. Over the years, he has mentored hundreds of journalism students as interns and as young professional journalists. He regularly helps economics students, both graduate and post-graduate, to prepare for examinations and moderator reviews. He is the Namibian respondent for the World Economic Survey conducted every quarter for the Ifo Center for Business Cycle Analysis and Surveys at the University of Munich in Germany. Since October 2021, he conducts a weekly talkshow on Radio Energy, again for a lay audience. Send comments or enquiries to [email protected]

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