Can we prove that cw has purchased shares for an additional 600m. This is important. Has snh announced his percentage increase in shareholding if it exceeds certain levels.
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On 31/05/2019 TITAN held 246108350 that means they purchased a further 2,123,923 in 2019.
My take the change to be a creditor is a new inventive method to try avoid the the ABIL scenario but as Captain82 said if you exchange goods or business for shares you become a ordinary shareholder. Further TITAN bought into the MF story which is pure simple investing on shares.
IN i gave my views on CW purchases way back....let me refresh you..
to make it easy to understand ill do it like im explaining to a 10 year old.....otherwise someone says vague because he cant understand normal english..
CW sold his Jewels to The PS and was paid in form of fake diamonds..
CW if he had a choice ( i cant confirm that) could have taken cash or shares in PS( fake diamonds)
If he took cash he would have been clear and safe irrespective of what happened to the PS!!
Assume he had a choice but took the fake diamonds. Lets assume he got paid 100m shares in PS in exchange for his jewels.( assume PS trading at that time R100.00 per share)
Now PS shares crashes to R20.00 due to fraud by MJ....
Lets follow sequence of events...CW had these shares ceded to banks for whatever and when PS went into free fall after MJ jumped ship the banks sold off the security of CWs PS shares ( the fake diamonds) to cover his loan obligations.
What did this ultimately mean...CWs Jewels were sold for something that suddenly had a value of zero. He lost his Jewels and his PS shares..all this due to the fraud of MJ who was representing the PS....SO this we can confirm as correct..If CW wants to sue he has every right to sue MJ or the PS.. MJ you wont get a cent off..So PS will share full liability..
Now lets see if CW cannot claim from the PS as he had an option to have cash but choose the shares.. as someone said here you cant be in a win win situation...
well i have news for him...If in the normal course of business the PS price shares fell , CW defo got no claims against the PS...exactly what happened at Abil..
One needs to differentiate between directors acting in normal course of business and things turning sour, acting negligently and dangerously and things turning sour or acting fraudulently and things turning sour. We know the position of MJ and what happened.. This was fraud..he was paid with "fraudulently overvalued PS shares"
Now what is CW buying shares.....he lost all or most of his shares that were sold off by the bank....Allhe is doing now is buying at these low prices to basically the same amount of shares he was given in exchange by the PW for his Jewels.
Once he is ready to go to court against the PS ( not MJ) he will say " Here is your fake valued shares PS...give me back my Jewel"
Simple....
The rest why he wants to sit round the table and talk.....Of cos he wants to do that to let at least the PS survive to get at least some of most of his jewel back if not all...If he does not sit and talk and sues now , he may only get less than 50% of his jewels back as he will be a creditor and share the proceeds of any fire sale on liquidation proceeds from sale of assets with other creditors. Shareholders will lucky if they get 1 south african cent if he proceeds with his claim now.
So the phrase that he took shares because he was greedy does not hold any water... yes if the PS shares lost value due to normal macro events , cash flow problems or banks calling in loans etc all in normal course of business , CW must share that risk...But because of fraud that shouldn't be his risk. he could have been paid in for example shares in abil for all i care... IF abil went down then , CW was at his own risk and nothing to do with PS...Then for sure he would lose out and cant sue the PS... But this was payment with fraudulent fake value shares in the PS...and that fake value occurred before he exchanged his Jewels and not after!!
Hope this simple example helped you understand what im trying to say!! clear as hell....