Nomvete-founded property fund Delta's JSE listing suspended with immediate effect

Founding CEO of Delta Property Fund, Sandile Nomvete and other key executives resigned with immediate effect.
Photo by Gallo Images / Financial Mail / Robert Tshabalala
Founding CEO of Delta Property Fund, Sandile Nomvete and other key executives resigned with immediate effect. Photo by Gallo Images / Financial Mail / Robert Tshabalala

Embattled property fund Delta has now suspended its shares on the JSE. 

The real estate investment trust, founded by Sandile Nomvete first withdrew its 2020 financial statements last week which sent its share price tumbling, losing 31% the day after an announcement accusing its former executives of wrongdoing.

The former executives, who left the company in August, have denied the accusations of procurement irregularities and misappropriation of funds.

In the days that followed since that 9 December announcement, Delta's share price clawed back some of the losses, increasing to 35 cents by Tuesday afternoon. But this is a far cry from the highs of R9.14 that the company once traded at in March 2017.

The decision to suspend the listing of its shares was however initiated by the JSE requirements because of the withdrawal of the financial statements. The suspension was with immediate effect.

Delta said its board had also engaged the JSE prior to this to consider a suspension of its listing but the country's main bourse could not immediately approve its request at the time.

"The board agrees with and supports the suspension, the ultimate aim being to protect investors  and enable accurate price formation. The board believes that the suspension is in the best interests of shareholders and the company," wrote Delta in the announcement.

It said its board views the suspension as a temporary measure until Delta publishes its restated 2020 financial statements and the interim results for the six months ended 31 August 2020.

The company is targeting to publish of the 2020 financials by no later than 28 February 2021, after which it will apply for the lifting of the suspension.

Compiled by Londiwe Buthelezi

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