Tanzanian firm seeks hearing ahead of delisting move

Pula Graphite – the Tanzanian graphite producer suing South Africa's African Rainbow Capital (ARC) for $195m over alleged violations of a confidentiality and non-compete agreement – has asked the Tanzanian High Court to move the court hearing forward before ARC delists from the JSE and A2X. According to Moneyweb, the case was originally filed in Tanzania in 2022 against ARC, African Rainbow Minerals (ARM), its founder Patrice Motsepe, and UK-based investment fund ARCH Emerging Partners. The case was refiled in November 2023 after the 2022 filing was dropped for technical reasons. Pula has asked the Tanzanian court to move its court date forward following the 18 March 2025 announcement by ARC to delist from the JSE and A2X. The Pula damages claim of R3.8bn represents more than half the roughly R6bn ARM had in cash at the end of December 2024. ‘This move (delisting) clearly changes the status quo relative to our suit against ARC,' said Pula chair Charles Stith. 'The timing is interesting because the delisting would happen on or around 2 June, which would be during the court-required mediation period that would conclude sometime in mid or late June, if we stuck to the original timeline announced by the court in March.’ An early hearing will allow the mediation process to commence much sooner, prior to the potential delisting of ARC, said Pula. ‘Pula Group and Pula Graphite partners strongly believe that a potential delisting could seriously jeopardise their ability to engage in a meaningful mediation process as well as the recovery of any damages, if successfully awarded by the court.’