Africa Opportunity Fund Limited Award of Appeal Panel in the Shoprite matter (1294N)
January 15 2019 - 4:01AM
UK Regulatory
TIDMAOF
RNS Number : 1294N
Africa Opportunity Fund Limited
15 January 2019
15 January 2019
Africa Opportunity Fund Limited ("AOF" or the "Company")
Award of Appeal Panel in the Shoprite matter
The Company's appeal of the arbitrator's award in the Shoprite
Holdings Limited ("Shoprite") matter delivered on 27 January 2017
took place in November 2018.
The appeal panel's award was received on 9 January 2019. The
appeal panel concluded that the Company did not obtain good title
to the 679,145 shares of Shoprite (including the interests of the
Company's contingent value right holders in 637,528 Shoprite
shares) that it purchased, and it was therefore not entitled to
dividends that had accrued. Leaving aside any remedy that the
Company may have to recover the original purchase price of these
shares and the determination of legal costs to be paid by the
Company, the estimated loss (including forfeited accrued dividends)
is approximately US $0.55 million, which equates to a reduction in
the net asset value ("NAV") per share of approximately $0.007. The
most recently released weekly NAV estimate for the shares was
$0.686 per share as at close of business on 4 January 2017.
Despite the Board's concerns about the appeal panel's award it
has decided the Company must move on. The next NAV to be announced
by the Company calculated as of the close of business on 11 January
2017 will include the $0.007 provision.
The Company will issue more announcements in due course if there
are further developments in this matter.
Background to the Shoprite arbitration
The Company acquired 679,145 Shoprite's shares on the Lusaka
Stock Exchange ("LuSE") in the normal course of business through
Zambian brokers between October 2009 and July 2011. Shoprite shares
were entrusted to a Zambian law firm, Lewis Nathan Advocates
("Lewis Nathan"), which served as transfer agent for the Shoprite
shares listed on LuSE and also as attorney-in-fact for Shoprite to
sell those shares. However, the law firm was accused by Shoprite in
mid-2011 of selling the shares contrary to restrictions established
by Shoprite. Shoprite further contended that it did not receive the
proceeds from the trades made by Lewis Nathan. Shoprite has sued
Lewis Nathan to obtain the proceeds from those trades. It has also
placed dividends due to its shareholders on the Zambian register
into an escrow account, pending the outcome of its lawsuit against
Lewis Nathan. The Company sued Shoprite in the Western Cape High
Court in 2014 for unpaid dividends, agreeing subsequently to the
arbitration which has culminated in the appeal award received on 9
January 2019.
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For more information please contact:
Africa Opportunity Fund Limited
Francis Daniels Tel: +2711 684 1528
Liberum (Corporate Broker)
Gillian Martin
Christopher Britton Tel: +44 20 3100 2000
This information is provided by RNS, the news service of the
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contact rns@lseg.com or visit www.rns.com.
END
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