Daily Maverick 168 weekly newspaper.
It has been a horrific turn of events for Delta Property Fund and Rebosis Property Fund, two of the biggest black-run companies on the JSE’s real estate sector, which is worth more than R200-billion.
Shareholders have watched the value of their Delta and Rebosis investments implode recently as both companies lurch from one extreme crisis to another – ranging from shocking governance problems to overall bad management decisions.
Delta shares, the trading of which has been suspended by the JSE (more on this later), tumbled by 51% in 2020, wiping R257-million off from its market value. Rebosis has also felt the sting of unforgiving shareholders as its B shares fell by 31%, shaving R69.9-million off its market value. Unfortunately, the value destruction for shareholders hasn’t ended there but has continued into the early days of 2021.
South Africa: JSE Suspends Delta Shares In the Interest of Shareholders allafrica.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from allafrica.com Daily Mail and Mail on Sunday newspapers.
Trading in Delta Property Fund shares was suspended by the JSE on Tuesday, 15 December, adding more woes for a real estate company that has been hit by a multimillion-rand fraud and accounting scandal implicating former company executives.
In a Stock Exchange News Service (SENS) statement, the JSE told Delta shareholders that the company’s shares have been suspended with immediate effect, a decision the bourse has taken “in the interest of shareholders”.
Delta owns a range of office properties that are leased to government departments and entities. Delta listed on the JSE in 2012 with a share price of R9.60 but its shares are now a penny stock, dropping to 35 cents.