15th Jan 2019 12:17
LONDON (Alliance News) - Africa Opportunity Fund Ltd said Tuesday its appeal against a ruling between it and South African retailer Shoprite Holdings Ltd has been turned down.
In February 2017, an arbitrator concluded the fund did not have good title to 637,528 shares it believed it had purchased in South African retailer Shoprite and was not entitled to dividends accrued on those shares.
Shoprite contended the shares were sold by its law firm on the Zambian Stock Exchange contrary to its instructions.
Excluding any remedy African Opportunity Fund will need to recover the original price of the Shoprite shares as well as legal costs, it expects a loss of USD550,000, equal to a reduction in net asset value of 0.7 US cents per share.
"Despite the board's concerns about the appeal panel's award it has decided the company must move on," the fund said.
Shares in Africa Opportunity Fund were untraded on Tuesday, last quoted at USD0.55. Shoprite's Johannesburg shares were down 0.6% at ZAR189.89.
Related Shares:
Africa Opp.