Ecsponent R2.3bn loss fear

MHMK GROUP: CORE ASSETS NOW UNDER MAURITIAN ENTITY OWNED BY CEO MANYERE'S FAMILY

- Roy Cokayne

The writing appears to be finally on the wall regarding the future of Ecsponent, the financially-distressed, previously JSE-listed specialist financial services company now named Afristrat Investment Holdings.

CEO George Manyere, on behalf of the board, confirmed that the company's planned voluntary liquidation had been reinstituted.

Manyere said a date had not yet been set for the application to be heard.

Investors invested R2.3 billion in preference shares in the company.

In March 2024, Afristrat's board was forced to abandon its planned voluntary liquidation application, pending the outcome of two other applications to liquidate the company that had been lodged beforehand.

Both those applications were disposed of by March this year.

Manyere is the first applicant, and Afristrat directors Godwin Nyengedza and Roger Pitt the second and third applicants for the company's liquidation.

Manyere advised Afristrat shareholders last week that "due to the ongoing challenges faced by the company and the fact the company is technically insolvent and unable to pay its debts as and when they become due, the company had, by way of board resolution, applied to the High Court of South Africa for voluntary liquidation of Afristrat Investment Holdings Limited (formerly Ecsponent Limited)."

He said the notice of the motion was served to Afristrat Investment Holdings Limited on 15 July.

In a founding affidavit deposed on behalf of the applicants, Manyere said Afristrat was commercially insolvent and that, under the prevailing circumstances, there were no prospects for its rescue.