South Africa: Regiments Capital Puts Up R500 Million in Capitec Shares in Lieu of 'State Capture' Claims

analysis

A fresh legal battle between the former partners of Regiments Capital have revealed details of a sneaky deal to have the company pay back hundreds of millions of rand to a Transnet pension fund. That deal, though, is already at risk amid an interdict application filed by former director, Eric Wood, a representative of a trust that holds a 32% stake in the company.

The Transnet Second Defined Benefit Fund has reached a R500-million settlement agreement with Regiments Capital in a deal that could mitigate against a wave of State Capture scandals the embattled company faces.

Regiments appears to have litigation fatigue and seeks to wipe out hundreds of millions of rand in civil claims, in part to "right the wrongs" following three years of exhaustive exposés involving its work at state-owned companies and alleged kickbacks to Gupta-linked front companies.

Signed on 8 August 2019, the agreement provides for the fund to take up 810,000 Capitec shares held through a shareholding vehicle in the Regiments stable.

It also discharges the company's remaining two directors, Litha Nhyonhya and Niven Pillay, the majority shareholders, from personal liability in the civil litigation and unburdens them from the restrictive shackles of anti-dissipation court orders...

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