JSE-listed black empowerment company Cape Empowerment Trust (CET) issued a cautionary on 8 August warning investors that it is in negotiations which may affect its share price. However, hours before the news was public, the CET share price went up nearly 70% from 18c to 30c.
According to Sapa, Business Day reported that CET is in talks with US company Perot Systems, owned by former US presidential candidate Ross Perot, for a possible $100 million injection.
The companies were to form a joint venture to target the electronic management of SA`s new taxi system.
However, according to Sapa, neither company has been involved in the tender process initiated by the Department of Trade and Industry for the system, although CET has the rights to one of three electronic monitoring system switches linking electronic tracking devices to fare management.
The share price move will have alerted the JSE, which will look at the circumstances in which the movement occurred and decide whether further investigation is required.
By midmorning today the share was untraded at 30c.
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