Mkhuseli Jack, chair of Main Street 198, took aim this week at the consortium that is set to replace it as I&J's B-BBEE partner, calling it a mysterious outfit that came out of nowhere at short notice.
JSE-listed food producer AVI, which owns I&J, the makers of frozen fish products, announced last week that it would discontinue the nearly 20-year B-BBEE transaction with Main Street and sign a new deal with Twincitiesworld. It said it gave Main Street adequate notice of the decision to discontinue the partnership.
But Jack said he was blindsided by an AVI letter notifying him of this on June 13, and that he had never heard of Twincitiesworld. AVI employees also have a share.
Twincitiesworld, a consortium, is led by Brian Figaji, who is the independent chair of I&J.
Jack said: “Professor Figaji has been the independent chair of I&J since 2004. [It] shocked us when newspapers reported him as the leader of Twincities, which is reported in the AVI statement as having a long relationship with I&J. Since 2004, I have never heard of such a company.”
Jack said that while their BEE arrangement had an expiration date, the letter received on June 13 was the first he had heard of AVI’s plans to discontinue its partnership with Main Street.
I&J remains empowered through the new B-BBEE transaction
— AVI
“It took us two years to complete the deal. Paperwork may be another two years. How Brian could do all this from June 9 is a miracle,” Jack said.
He said he travelled to Cape Town last Monday evening for a scheduled meeting with AVI's leadership, including I&J MD Jonty Jankovich-Besan, on Tuesday, but it was called off.
“I’m not on the I&J board by AVI's benevolence. I am there to fill the position on Main Street. They can’t treat me as if I am desperate to be on their board,” said Jack.
Figaji told Business Times that Twincitiesworld’s shareholders entered into the AVI empowerment deal to advance the social upliftment and transformation of communities and support community-based organisations.
“Twincitiesworld is very excited about the opportunity afforded us to partner with I&J. Our company is 100% black owned and 50% of the members are female. We have historic links with I&J, and our members have business experience and a record of civil society engagements,” said Figaji.
Business Times asked Figaji for details of the communities represented by Twincitiesworld and his views on Main Street contesting the discontinuation of its empowerment transaction with AVI. Figaji did not respond to these questions.
AVI told Business Times previously that after extending the B-BBEE transaction with Main Street 198 several times, in 2012, 2018, and 2022, it matured on July 1 2023, having generated significant value over 19 years, including more than R202m in net cash to Main Street.
“In line with the agreement, AVI exercised their call option and acquired the shares held in I&J from Main Street upon the maturation of the transaction. AVI has now entered into a new agreement with Twincitiesworld which will own 18.75% of the issued share capital in I&J Limited,” said AVI.
AVI said the Main Street empowerment arrangement matured normally on July 1 and was terminated in line with agreements.
“The B-BBEE transaction concluded in terms of the signed legal agreements between the parties. I&J remains empowered through the new B-BBEE transaction,” the company said.
“The Twincitiesworld transaction will be registered as a major B-BBEE transaction with the B-BBEE Commission, and the department of forestry, fisheries, & environment will be notified,” AVI said.
AVI added that it and I&J would address any concerns that may be raised by regulatory bodies.
Jack said he was communicating with his lawyers and pushing for an investigation by the authorities.
Jack's lawyers informed AVI that he would request the department of forestry, fisheries & environment to investigate whether AVI could keep I&J's fishing rights that were secured as a result of it having a BEE partner, which at the time was Main Street. A request for a B-BBEE Commission probe is also being considered.
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