COMPANY COMMENT
Institutions keep calm and buy into Fortress despite probe
Some financial institutions are buying shares in the very companies they demanded be probed
In September, 10 of the largest investors in the country, including Prudential, Coronation, Allan Gray and the Public Investment Corporation (PIC), took the unprecedented step of asking the boards of the Resilient group of companies for a forensic probe. This followed the large sell-off in the shares of Resilient, Nepi Rockcastle, Fortress and Greenbay Properties in the first quarter of 2018, which cost investors more than R100bn and flung the listed property sector into turmoil. The sell-off also sparked an investigation by the Financial Sector Conduct Authority, which is investigating possible insider trading and price manipulation, and misleading reporting by or about the group. It remains unclear when the probe will be finalised and whether findings will be made public. But instead of cranking up the pressure, the same financial institutions are keeping mum, with some buying shares in the very companies they demanded be probed. This week, the PIC increased its holding in Fortres...
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