Novus share price jumps 11% despite court ruling
The supreme court of appeal has ruled that Novus’s textbook contract with the department of basic education is invalid
JSE-listed Novus’s share price rose as much as 11.43% to 19.5c on Thursday, despite the company confirming, after the market closed on Wednesday, that it is considering appealing an unfavourable court judgment. The supreme court of appeals (SCA) has set aside a R3bn contract for the printing and distribution of school workbooks to the Lebone Novus UTi Consortium, saying it is constitutionally invalid. “The parties will study the implications of the judgment in detail before deciding on any action in this regard,” Novus said in a statement.
The judgment preserves the consortium’s right to continue to print and distribute the school workbooks until March 2020 — the original contract. Any extension of the contract, however, has been ruled out. Rival group Caxton had fought the contract, maintaining a consortium led by it had been treated unfairly. Moneyweb reported that the court ruled that the bid evaluation committee treated it unfairly and that the two bids were not treated eq...
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