on the spot
Market unconvinced by Fortress and Resilient's denials
Resilient CEO Des de Beer and financial director Nick Hanekom discuss the controversial cross-holding, and why they haven't yet 'disconnected'
The market is still giving Resilient and Fortress B shares a wide berth, despite strenuous denials by Resilient’s management that the property company’s empire builders have spent years manipulating its shares. The following is an extract from an interview the Financial Mail held with Resilient CEO Des de Beer, and financial director Nick Hanekom. We started with the market’s well-known concern as to the extent of Resilient’s cross-holdings. DDB: They’re relatively small in relation to the market caps. NH: Remember Nepi is a company in its own right, it’s massive. They’re real businesses in foreign jurisdictions. Which you started … DDB: We put in seed money. Remember there is only one cross-holding, which is between us and Fortress, and we should have disconnected it, we know that. It’s fully disclosed, the legitimate asset managers have looked at it and the disclosure’s been there forever. Why not "disconnect", knowing the market’s unease with the relationship? DDB: We were gettin...