RE: There is a whiff off this14 Feb 2024 10:44
Thanks for replying Ilja/Tharisa.
I think you imply that I missed your point - which is the original poster miscalculated the Karo valuation and so you would like action taken against them. In defence of the poster, I would say that they have later acknowledged and corrected their calcs.
The underlying issue remains however and you have not addressed it. This issue is that Tharisa appear to have used our business’ money to subscribe for new shares in our partially owned subsidiary, Karo, valuing this subsidiary business at double Tharisa’s market cap, at a price which appears to me to be highly unattractive. This has then been relayed to us shareholders in the footnotes without proper comment or rationale leaving a void for us to speculate and fill in the blanks. You appear not to be happy with the ‘filling of the blanks’.
Not sure anyone has mentioned the word corruption specifically. I would point out though that hypothetically should additional Karo shares be overpaid for by Tharisa, then the other Karo owners would therefore benefit disproportionately. And there seems to be overlap with Pouroulis both owning Medway Developments (who have minority interest in Karo) and controlling Tharisa, which you no doubt can see might lead to speculation over conflicted actions.
We’d like management to explain the rationale of the business decision and why the extra subscription is deemed in our business interest. If it has been explained previously please kindly point out where so we can put this matter to bed.