Mustek Buyout Drama: Novus Faces Trp Setback

The Takeover Regulation Panel TRP has "unilaterally withdrawn" its approval of Novus's "firm intention announcement" regarding the Mustek offer and given the firm 20 business days to publish a revised announcement, Novus said late on Friday. It did not immediately provide reasons for the TRP's decision.

Novus was legally compelled to make a mandatory offer to Mustek shareholders last November after its shareholding in the technology distributor 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.

This latest twist in the deal comes 10 days after Novus secured approval from the Competition Tribunal to buy a controlling stake in Mustek, although it attached some conditions related to employment.

Novus CEO Andre van der Veen told TechCentral at the time that although the findings by TRP were considered by Novus to be incorrect, the only party materially affected by the ruling was the DK Trust, which will for six months after the conclusion of the deal be barred from buying Mustek or Novus shares.