Mustek Acquisition Drama

Following an investigation, the TRP concluded that Novus acted "in concert" with the DK Trust - created by late Mustek founder David Kan - in setting up the transaction, a move that may have disadvantaged smaller shareholders in Mustek.

The protection of minority shareholders is part of the core mandate of the TRP, an independent body reporting to the minister of trade, industry competition whose function is to enforce the takeover regulations stemming from the Companies Act.

"Having carefully considered the factual background, legal framework and submissions presented in this matter, the panel concludes that the DK Trust acted in concert with Novus for the purposes of the mandatory offer," said the TRP's ruling.

But the TRP's findings are unlikely to stop the deal from going ahead. According to Novus CEO Andre van der Veen, the only party materially affected by the ruling is the DK Trust, which will for six months after the conclusion of the deal be barred from buying Mustek or Novus shares.

Novus was legally compelled to make a mandatory offer to Mustek shareholders in November last year after its shareholding in the tech company breached the 35 mark. An offer comprising a cash consideration of R13/share or a cash amount of R7/share plus one ordinary share in Novus for each Mustek share held or two Novus shares for each Mustek share tendered was then made to shareholders.