Trustco to restate its financials
Trustco Holdings has agreed to restate its group annual financial statements for the year ending 31 March 2019, as well as its interim results for the six months ending 31 August 2018 after a protracted legal battle with the JSE.
This follows after Judge Sulet Potterill this morning handed down her decision in a review application brought by Trustco in the High Court of South Africa in September. She ruled that the Financial Services Tribunal decision of 22 November 2021 stands.
The issue between the JSE and Trustco revolves around the waiver of two loans by the Namibian-based group’s majority shareholder, Quinton van Rooyen – one of N$545.6 million and the other N$1 billion – as well as certain of Trustco’s Elisenheim properties.
The JSE suspended trading in Trustco’s shares this morning, which means that trading in its shares was also suspended on the Overall Index of the Namibian Stock Exchange (NSX). Its shares had fallen by 16% to 41c in early-morning trade before the notice was issued, valuing it at R791 million.
“After a protracted legal battle with the Johannesburg Stock Exchange (JSE) and the Financial Services Tribunal (FST), over a period of more than two years, Trustco now has actionable evidence that its financials will need to be restated after Judge Potterill ruled that the Financial Services Tribunal decision of 22 November 2021 stands,” Trustco said in a statement.
“Trustco remains listed on the JSE and will abide by the listing requirements. Trustco shall, in the interest of all stakeholders, proceed to restate its financial statements, subject to its right to appeal against the decision, and without prejudice to any other legal rights and remedies it might have in law,” the statement read.
Trustco’s Group MD, Quinton van Rooyen, said: “It is an unfortunate but necessary step that a court order is required to override the bona fide actions and representations of our independent board and auditors. With this court order, we will comply to restate our financials as directed by the JSE.”
Trustco is currently engaging with its auditors and external advisors to comply with the directive, and expects that it will be able to restate its financials alongside its current periods financials, after which the suspension on the trading of shares will be lifted, the group said.
This follows after Judge Sulet Potterill this morning handed down her decision in a review application brought by Trustco in the High Court of South Africa in September. She ruled that the Financial Services Tribunal decision of 22 November 2021 stands.
The issue between the JSE and Trustco revolves around the waiver of two loans by the Namibian-based group’s majority shareholder, Quinton van Rooyen – one of N$545.6 million and the other N$1 billion – as well as certain of Trustco’s Elisenheim properties.
The JSE suspended trading in Trustco’s shares this morning, which means that trading in its shares was also suspended on the Overall Index of the Namibian Stock Exchange (NSX). Its shares had fallen by 16% to 41c in early-morning trade before the notice was issued, valuing it at R791 million.
“After a protracted legal battle with the Johannesburg Stock Exchange (JSE) and the Financial Services Tribunal (FST), over a period of more than two years, Trustco now has actionable evidence that its financials will need to be restated after Judge Potterill ruled that the Financial Services Tribunal decision of 22 November 2021 stands,” Trustco said in a statement.
“Trustco remains listed on the JSE and will abide by the listing requirements. Trustco shall, in the interest of all stakeholders, proceed to restate its financial statements, subject to its right to appeal against the decision, and without prejudice to any other legal rights and remedies it might have in law,” the statement read.
Trustco’s Group MD, Quinton van Rooyen, said: “It is an unfortunate but necessary step that a court order is required to override the bona fide actions and representations of our independent board and auditors. With this court order, we will comply to restate our financials as directed by the JSE.”
Trustco is currently engaging with its auditors and external advisors to comply with the directive, and expects that it will be able to restate its financials alongside its current periods financials, after which the suspension on the trading of shares will be lifted, the group said.
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