Outraged creditors of Sharemax successor Nova Property Group, who at a heated meeting on Friday accused the group’s directors of enriching themselves, look set to force sweeping changes to the terms of a proposal to list Nova’s R2.25bn property portfolio on the JSE. Nova took on Sharemax’s property assets in 2012, after the Reserve Bank shut it for unlawfully taking deposits. By that time, about 20,000 people, most of whom would become debenture holders in Nova, had invested close to R5bn into Sharemax properties. Now, these debenture holders, mostly Afrikaans pensioners, must vote on a proposal to convert their debentures into shares in a new company holding Nova’s property assets, which is to list on the JSE. The conversion would nullify their claims against Nova, but it could potentially give them more liquid, valuable instruments. In terms of the proposal, 19,700 debenture holders will get a 34.45% interest in the listed entity, with Nova’s seven directors claiming 43.21% — a sh...
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