Wednesday, June 23, 2021

Buyers of Mmegi demand immediate transfer of shares

Former Mmegi Newspaper editors, Methaitsile Leepile and Titus Mbuya, insist they have purchased a stake of 30 percent in Mmegi Investment Holdings, a company that owns Mmegi newspaper, the Botswana Guardian and at least two other weeklies.

The duo is threatening to go to court if the shareholding remains unchanged. Leepile and Mbuya made out a cheque of P5.3 million as money for 30 percent shares of Mmegi Publishing Trust, a substantial shareholder in Mmegi Investment Holdings.

Through their lawyers, Lerumo Mogobe Legal Practitioners, the two men, both of whom are directors at Mmegi Publishing Trust, have indicated their intention to sue if the transfer of shares is not made immediately.

The lawyers reveal that they have been instructed to approach the High Court to force the Mmegi Publishing Trust to hand over the purchased shares to Leepile and Mbuya.

The two claim that since Mmegi Publishing Trust resolved voluntarily to sell off its shares it should honour its end of the bargain by transferring shares.

According to the two, the board resolution to sell shares is irrevocable and cannot be amended or withdrawn.

“Our clients, Mr Mbuya and Mr Methaitsile Leepile made you a legally binding offer to purchase those shares….,” the lawyers’ state.

The lawyers state that the duo made financial arrangements ‘at substantial cost, effort and time to purchase the shares’.

They state that having complied with all the terms of the sale, they paid the full amount for the shares and it was encashed by the seller.

“In terms of the MIH (Pty) Ltd shareholding agreement you are required to transfer all the shares or portion thereof in the event there are other shareholders intending to purchase the same shares and have paid so they are apportioned, ‘within 30 days,” the lawyers said. “To date, you have not transferred the shares or a portion thereof to our clients. We don’t know the reason why this is the case nor have you provided us with a response explaining your position despite several letters to yourselves addressed to your company secretaries, which have gone unanswered.”

The lawyers have said that if the shares are not transferred, they will sue to force the transfer as well as claim damages for the delay.

The two men say the delay has financial implications.

RELATED STORIES

Read this week's paper