Trustco hits back at the Johannesburg Stock Exchange over a US$75 million mining deal

 Trustco Group Holdings’ office in Windhoek, Namibia

Trustco Group Holdings has hit back at the Johannesburg Stock Exchange (JSE) following a public censure and financial penalty related to its USD 75 million investment in Meya Mining. The company says the transaction, announced in August 2022, had full shareholder backing, but was delayed by what it calls “regulatory interference” and “obstructive processes” by the JSE over more than two years.

The JSE suspended Trustco’s shares last week and imposed a R5 million fine, claiming the sale of part of the company’s stake in Meya Mining was executed without prior shareholder approval. Trustco Deputy CEO Quinton van Rooyen Junior said the exchange’s conduct undermines shareholder interests and goes against the principles of efficient capital markets.

“Our shareholders overwhelmingly support this transaction, and as directors, we acted in their best interests, prioritising compliance with fiduciary duty over regulatory obstruction.”

He added that Trustco had maintained transparent communication with the JSE and engaged in multiple meetings to clarify the transaction’s categorisation and required preliminary economic assessments.

The company said that the $75 million investment was fully backed by irrevocable shareholder commitments and sees the fine and censure as unjustified.

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