Court blocks overseas partner’s share grab

A mega-Portuguese civil construction firm has been stopped in its tracks from attempting to buy a 49% stake in its local partner for a paltry R1. The Star reports it took the Gauteng High Court (Johannesburg) to halt the questionable sale last month after the Mdali Consortium pleaded its case against its overseas partner, Mota-Engil Construction SA (Mecsa). Mdali put the 49.16% stake it acquired when its partnership took effect in 2014 at $10m (R139m), a price tag that Mecsa disputed. Last month, the High Court issued an order that barred Mecsa from tampering with Mdali’s shares until the court has resolved the matter. The Star says it has seen the order which lists Mdali as the applicant and Mota Internacional Commercio Consultadoria Economica, Mecsa, DMO Incorporated Attorneys and Mota-Engil Investments SA as respondents. ‘The first respondent is interdicted and restrained from transferring, appropriating or encumbering the 59 shares in the fourth respondent, which are registered in the name of the applicant and comprising shares 62 to 120 inclusive, as reflected in the share certificate number 4 issued by the fourth respondent on 16 September 2014,’ read the papers. They further stated that ‘the interdict will operate as an interim interdict, pending the outcome of arbitration proceedings as provided for in clause 8 of the sale of shares agreement concluded between the first respondent and the application on 16 September 2014, or further proceedings before this court.’

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