36ONE REPORT
Resilient drops on market discontent
36ONE's report claims the high valuations of Resilient group arise from ‘insider-directed transactions to deliberately inflate share prices’
Investors were not persuaded by Resilient’s initial response to damaging allegations made by 36ONE Asset Management and on Monday marked down the shares significantly, moving them towards the levels the asset-management company contends are more appropriate. A report by 36ONE, which leaked into the market on Friday, claims the exceptionally high valuations of the Des de Beer-led Resilient group, which also includes Fortress, Nepi-Rockcastle and Greenbay Properties, “arose from insider-directed and insider-related transactions in group companies’ shares [intended] to deliberately inflate share prices and volumes traded”. A section titled Possible insider trading referred to the purchase and sale of Greenbay shares by Allistar Fredericks Development at about the time of the Greenbay bookbuild in May 2017. Fredericks was the first black hockey player selected for the national team. “The timing of these sales was either highly fortuitous or based on insider information,” said the 36ONE ...
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