The Absa enigma
The PIC, Coronation, Allan Gray and Prudential want an independent probe into alleged wrongdoing at Resilient — but why is Absa Asset Management rowing its own boat?
In a curious turn of events, it has emerged that Absa Asset Management refused to co-sign a letter sent by top asset managers to the Resilient property group demanding a proper probe into allegations of misconduct. Significantly, Absa was one of the only large shareholders of the four Resilient companies — Resilient, Fortress, Nepi Rockcastle and Greenbay — that refused to be a signatory. The letter, sent on August 23, says that due to a "perceived lack of independence and insufficient scope in the investigations commissioned by Resilient", there needs to be a new "full, transparent and independent forensic investigation of all allegations". The fund managers who wrote to Resilient say this is the only way to address the "current negative perception" around the Resilient companies. Over the past year, Resilient’s share price has fallen 54%, Fortress "B" has fallen 58%, Nepi has lost 27% and Greenbay 34%. The Resilient group has been accused of manipulating the price of its shares th...
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