Printing and packaging company Novus Holdings is challenging a recent decision by the Takeover Regulation Panel (TRP) to withdraw its approval for the printing and packaging company's mandatory offer to acquire shares in Mustek.
Novus said in a statement on Friday that it “strongly disagrees” with the TRP’s decision, which was made on unspecified grounds.
The company has been directed to publish a revised firm intention announcement (FIA) within 20 business days, “which may cause confusion and uncertainty among shareholders”, it said.
In November 2024, Novus acquired more than 35% of technology company Mustek’s shares, which triggered a mandatory buyout offer under SA takeover rules. Initially, the TRP approved Novus’s FIA on November 15. However, on February 24, the TRP ruled that the DK Trust — a Mustek shareholder — acted in concert with Novus during the transaction. This finding led to the TRP unilaterally withdrawing its approval for the FIA.
Adding complexity to the situation, the Competition Commission endorsed the proposed takeover in February despite the TRP ruling. The commission found no evidence that the transaction would substantially lessen competition in related markets and highlighted public interest conditions aimed at protecting jobs. These include a two-year moratorium on retrenchments and preferential employment conditions for employees retrenched by Mustek before the merger.
Novus said it intends to appeal the TRP’s ruling on an urgent basis on the grounds that it was improper, and undertook to provide an update to the market as soon as it is able.
The company said it remained committed to the mandatory offer process and will implement it under applicable legislation.
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