The Securities Regulation Panel (SRP) says speculation about a probe into alleged concert party activity relating to a boardroom coup at Comparex has blown the matter out of proportion.
The watchdog body launched an investigation in June at the request of the non-executive directors ousted by institutional investors Allan Gray, Investec Asset Management and Sanlam Investment Management.
The three institutions, which collectively own more than a third of Comparex, replaced the non-executive directors with their own nominees after dissatisfaction with the group`s strategy and the fact that it was sitting on a large cash pile.
SRP executive director Richard Connellan today emphasised that the probe was still at a very early stage. "I am miles and miles away from a decision. And the process may even be delayed because some of the parties aren`t available."
He says he outsourced the initial investigation after he received the complaint. "The party to which we outsourced has come back. The purpose of that investigation was simply to accumulate documentation.
"It is going to the next stage and I will go forward with hearings."
Connellan says this is standard fare and should not be construed to mean that the SRP is close to any decision. He adds that he is unhappy with media speculation around the issue. "The last thing I want is for investors to be misled."
If the SRP was to rule that the parties did act in concert, it could compel them to make an offer to minority shareholders.
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