Mall deal still a riddle wrapped in a mystery
Funds deposited in Pillay’s company
The role of Vivian Reddy’s attorney, Nike Pillay, in the R250-million deal that saw Chemical Industries National Provident Fund (CINPF) purchase a stake in Reddy’s Kwadukuza Mall is shrouded in mystery.
Sunday World learnt this week that Pillay’s firm, Nike Pillay Inc, acted as “transaction legal advisors” for the CINPF in a deal where Reddy was the seller.
This much was confirmed by Reddy in his letter to the paper, asking for a retraction of the story we published last week.
This paper last week reported that the fund paid Reddy R250-million for a 49% stake in the mall, despite the share purchase agreement stating the stake was R178-million. Reddy and the fund said, in fact, the deal was R250-million consisting of two parts, with the R72-million balance allegedly held on condition the second part of the deal came to fruition.
The R250-million was deposited into Nike Pillay Inc’s account in August.
Reddy in his letter said: “Nike Pillay Inc are CINPF’S transaction legal advisors … the proof of payment you have is of the fund to the nominated account of their transaction advisor’s attorney, Nike Pillay Inc.”
Strangely, Pillay was quoted in a News24 article dated July 13 2021 as Reddy’s lawyer on an unrelated matter. Pillay also represented Reddy’s wife and reality TV star Sorisha Naidoo in her complaint to the Ombudsman about an article published by the Daily Maverick. Reddy’s spokesperson, Brian Mpono, said: “A completely different and unrelated company, Edison Power, is the entity that briefed Nike Pillay on the matter relating to the July 19th News24 article. The briefing took place long after the CINPF transaction was concluded by Kwadukuza Mall,” he said.
Reddy owns Edison Power. The CINPF’S principal officer, Lucas Mashego, in a letter to the fund’s members this week seemed to be confused on Pillay’s role. “The paper [Sunday World] erred on matters of fact when it claimed that ‘Nike Pillay Inc’ are attorneys of the seller [Mr Vivian Reddy]. Nike Pillay Inc are the attorneys of our transaction advisor.”
However, the fund’s transaction advisors Vunani Capital washed its hands off Pillay.
“Vunani Corporate Finance [Vunani Capital] was appointed as corporate finance advisors to the trust to specifically purchase the asset. All other advisors were appointed directly by the trust and not through Vunani Corporate Finance,” the firm’s spokesperson Jacques de Bie said.
Mashego in his response to Sunday World’s questions seems to now take ownership of Pillay. “When Nike Pillay was appointed by the BOT [board of trustees] ... he was not involved with the seller, Kwadukuza Mall company.”
Pillay said: “Unfortunately, lawyers and law firms are ... prohibited from disclosing information relating to clients.”
The R250m was deposited in Nike Pillay Inc’s account in August