Firm in talks over share placements

BASIL Read is in discussions about the potential private placement of shares that may result in the group becoming a black-owned company. The group yesterday warned shareholders that if successfully concluded, the private placement might have a material effect on the price of the company’s shares. Basil Read first published a cautionary announcement about these discussions last July. It has subsequently been renewed several times. Neville Nicolau, the chief executive of Basil Read, said in March that they were confident about concluding a deal that would result in the company becoming 51 percent black owned. Nicolau stressed Basil Read did not want a passive BEE partner but for the new black shareholders to be involved in active management. The Black Business Council in the Built Environment (BBCBE), also in March, launched an aggressive attack on planned and pending transformation transactions in the construction sector flowing from the settlement agreement reached between the government and seven listed construction companies. It claimed Basil Read remained “unco-operative and recalcitrant” and letters written to Nicolau had not even been acknowledged. Basil Read dismissed these claims, adding it had indicated its willingness to engage. – Roy Cokayne

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