Riot damages won’t exceed R20m, says Mustek
JSE-listed distributor of personal computers Mustek is expecting damages from the riots this week to not exceed R20 million.
The group updated shareholders today, saying it’s still assessing the damage caused to its Durban branch.
Mustek’s Durban offices were looted earlier this week and its building destroyed and set on fire, amid the wave of violence and looting that engulfed KwaZulu-Natal (KZN).
The unrest and destruction originated in KZN, and quickly spread to Gauteng. It was sparked by protest action against the incarceration of former president Jacob Zuma.
Today, Mustek, which is headed by CEO David Kan, notified shareholders that total losses to inventory and equipment is not expected to exceed R20 million.
“The loss of profit due to business interruption will be quantified in due course. The group has appropriate insurance cover and has notified its insurers accordingly. Temporary warehouse space has been secured and the group expects the branch to be reopening as soon as it is safe and practical to do so,” reads the company notice to shareholders.
It adds: “The group’s priority remains the well-being and safety of its employees, customers and assets. Trade continues as normal in the rest of the group’s operations. The group will update shareholders if there is any material change in the situation.”