Resilient, Fortress plunge on BEE entity
Resilient share price falls after its cautionary regarding the company’s controversial relationship with Siyakha Education Trust
The Resilient share price hit a three-and-a-half-year low on Thursday afternoon after an announcement that management was looking closely at the valuations underpinning the company’s controversial relationship with its broad-based black economic empowerment (B-BBEE) partner Siyakha Education Trust. The share hit a low of R67.70 before recovering marginally to close 10.32% down at R69.95. Within minutes of the Resilient announcement its stablemate, Fortress Reit, issued a similar statement and its share price slumped to a low of R14.99 before recovering to close 10.83% weaker on the day at R16.05. The announcements sent jitters through the market as it placed the spotlight firmly on one of the key issues behind a number of reports that have slammed the Resilient group’s accounting policies and the use of related parties to trade in the group’s shares. 36ONE Asset Management said the manner in which the BEE entity was structured created another set of related parties through which gro...
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