PSV calls off B-BBEE deal over non-payment of R5m

(iStock)
(iStock)

PSV Holdings [JSE:PSV] has terminated its agreement with proposed B-BBEE partner Beryl Holdings following non-payment of a R5m subscription price due by Beryl, the industrial holding company said on Tuesday evening.

In a statement issued via the Stock Exchange News Service, PSV said in order to achieve its B-BBEE objectives, it had instead resolved to sell a percentage of PSV Industrial to a broad-based ownership scheme to establish an ownership trust.

"This sale will be structured to address broad-based ownership for the operating entities of the Group," it said. 

PSV, which is listed on the JSE's alternative exchange, is a provider of steel, stainless steel, industrial supplies, specialised control valves, engineering linings, cryogenic equipment and storage tankers.

It also provides technology to the mining, water, waste water management, health care, infrastructure and manufacturing sectors in SA and the rest of Africa.

In September, it announced the B-BBEE transaction with Beryl Holdings, a subsidiary of diversified investment company Beryl Group, which focuses on strategic proprietary investments. Beryl is 100% black-owned and 95% female. Beryl was intended to acquire a 30% stake in PSV Industrial and a further 30% in PSV Asset Co.  

PSV added in the September notice that the B-BBEE transaction was subject to a suspensive condition, namely that by October 2018, a subscription agreement between PSV and Regis in June should become unconditional and be duly implemented. The agreement with Regis was not mentioned in the latest update.

Fin24 contacted Beryl for comment on Tuesday evening, but had not received a response by deadline. 

ZAR/USD
17.44
(-0.15)
ZAR/GBP
22.83
(-0.27)
ZAR/EUR
20.64
(-0.28)
ZAR/AUD
12.53
(-0.21)
ZAR/JPY
0.16
(-0.22)
Gold
1932.64
(+0.57)
Silver
25.96
(+1.24)
Platinum
937.00
(+0.86)
Brent Crude
45.32
(+2.09)
Palladium
2163.01
(+1.87)
All Share
57417.28
(+0.44)
Top 40
53126.54
(+0.56)
Financial 15
10139.85
(-0.74)
Industrial 25
76210.18
(+0.91)
Resource 10
58992.57
(+0.54)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 977 votes
It depends on how the funds are used.
74% - 6483 votes
No. We should have gotten the loan elsewhere.
15% - 1344 votes
Vote