THE South African Clothing and Textile Workers Union’s (Sactwu’s) efforts to sew up struggling clothing manufacturing operations has seen it sacrifice dividend flows in a bid to retain jobs.The union acquired several well-known — but loss-making — clothing operations from Seardel Investment Corporation in 2013. The operations, which have racked up losses in recent years, were set for closure.Part of the deal saw Sactwu taking a R76m loan from Deneb Investments, the industrial holding firm split off from Seardel — which now focuses exclusively on media assets — last year.The loan has no fixed repayment period. But as security, Sactwu had to agree last year to cede its valuable future dividend flows in empowerment investment conglomerate Hosken Consolidated Investments (HCI) and new-look Seardel.Sactwu holds a 32.1% stake in HCI and 30% in Seardel, which has free-to-air television broadcaster e.tv as its main asset.Deneb CEO Stuart Queen said that the outstanding amount of R76m was ex...
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