Shares in Christo Wiese's Invicta slide as probe into firm is reopened
Invicta was publicly censured by the JSE in 2016 as two of its CEOs had sold shares to Invicta unit Humulani Marketing without getting the required shareholder approval
Christo Wiese's industrial holding company, Invicta, warned shareholders after the market closed on Monday that the JSE was reopening a 2016 investigation, which resulted in it receiving a public censure.
The market reacted on Tuesday morning by sending Invicta's share price down 5.57% to R33.05.
Invicta was publicly censured by the JSE two years ago because two of its CEOs — incumbent CEO Arnold Goldstone and former CEO Charles Walters who is now Assore's CEO — had sold shares to Invicta's subsidiary, Humulani Marketing, without getting the required shareholder approval.
According to Invicta, it reversed the transactions and informed the JSE and its auditors as soon as it became aware it had breached the stock exchange's rules.
"The JSE has now received information alleging that the company and/or its directors did not fully and accurately disclose all the relevant facts to the JSE during the course of the JSE’s 2016 investigation, and had failed to rectify this despite the issue having been raised with members of the company’s audit committee," Tuesday's statement said.
The JSE has asked the directors involved to respond to these allegations.
"The company has appointed an independent third party, Moore Stephens, to consider and advise it in regard to the allegations as the company is not aware of the alleged impropriety," Invicta said.