BEE bothers Mustek

By Kimberly Guest for Mustek
Johannesburg, 29 Feb 2008

The Mustek group will appear against black economic empowerment (BEE) shareholder Puno Printing Solutions Investments in the High Court next month.

Puno acquired a 30% shareholding in Mustek`s subsidiary in June 2006, from Brother Business Machines founder, James Booysen.

The High Court action is aimed at protecting shareholders, says FD Hein Engelbrecht.

"We have a few questions to ask of Puno which we believe is in the interests of our shareholders. Basically, we are in dispute with them over their BEE credentials," he explains.

Mustek issued a cautionary to shareholders yesterday explaining it is in negotiations with a potential BEE partner.

This, says Engelbrecht, is unrelated to its dispute with Puno: "We`ve said that we wanted to do an equity deal at group level for some time."

However, a report in last week`s Financial Mail alleged the group-level empowerment deal had soured the relationship between the two parties.

"Mustek told Puno it wanted to buy back the 30% of Brotek so it could do an empowerment deal at group level, rather than in individual subsidiaries. Puno agreed to sell its 30% back to Mustek for R12 million, but the deal fell apart," it contended.