Sactwu faces legal action as guarantor of a R65m deal
Union faces legal action as guarantor of a R65m deal in which Deneb sold textiles firm Winelands – but has yet to be paid the first instalment
Deneb Investments has called out former shareholder, the SA Clothing & Textile Workers’ Union (Sactwu), for a guarantee covering the recent sale of its Winelands Textiles subsidiary in Worcester.The first tranche settlement for Winelands — due at the end of March — is still outstanding, and Deneb is now pursuing legal action against the buyer and the union for the full amount.The situation could be slightly awkward. Sactwu is the majority shareholder (32.2%) of Deneb’s parent company Hosken Consolidated Investments (HCI), and was formerly a sizeable shareholder in Deneb (previously Seardel).The relationship goes even deeper. Sactwu also acquired most of Deneb’s clothing manufacturing around six years ago when these loss-making entities were slated for closure.Winelands — better known in the textile trade as Hextex — was sold to an empowerment entity, K2019630452, for R65m earlier this year.The name linked to the empowerment entity is businesswoman Tina Eboka, a former Seardel nonexe...
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