JOHANNESBURG– Ailing property firm Pinnacle Point Group may be delisted from the Johannesburg Stock Exchange should a final liquidation in November be approved.
Already the trading of Pinnacle Point shares, which are 1c apiece, have been suspended on the Johannesburg Stock Exchange (JSE) following a court ruling ordering the company to be put under provisional liquidation.
“The requirements make provision that if a company is placed into liquidation the company may be suspended under those circumstances and typically we would. In this particular case the company also requested the JSE to suspend the listing and we obviously acceded to that request,” Andre Visser, thegeneralmanager for Issuer Services at the JSE said.
Asked what the motivation was for Pinnacle Point to remain listed on the JSE if it had liquidity issues, Visser said:
“There is no real motivation at this stage that is why it has been suspended. But what I am saying is we will only consider the termination once we see what is the outcome of the court case. If the company somehow comes out of liquidation and it is liquid again the JSE would consider [re-instating the listing] but if that is not likely then obviously we would not re-instate the listing.”
The provisional liquidation was granted in favour of a firm called Cape Point Vineyard, which owns 80m shares or just under 1% of the Pinnacle Point Group. Cape Point Vineyard won a business rescue in July, appointing Mike Lane as a practitioner. But now it wants Pinnacle Point to be finally wound up.
The owner of Cape Point Vineyard, Sybrand van der Spuy, says the business rescue was turned into a liquidation because of frustrations from some board members at Pinnacle Point. Van der Spuy believes there is a zero chance that Pinnacle Point will avoid a final liquidation.
“I will take a bet not because I am pleased about it. It’s a disaster for myself I am losing a bit of money but if you look at the poor pensioner they are losing R260m and the chances of shareholders getting any money back I think it’s zero … I have lost R5m. It’s one thing for me to lose R5m and other people to lose R260m,” van der Spuy said.
He also said that he was considering laying criminal charges against some board members at Pinnacle Point for alleged bribery.