Sharemax: Investors lose half their R4.4bn sums

Investors in schemes promoted by Sharemax Investments have lost R2.2 billion on their investments, according to Moneyweb. The financial news website said yesterday that about 33 000 investors under the old Sharemax structure had been owed R4.35bn by the various syndication companies. They were offered either shares or debentures in terms of a scheme of arrangement and offer of compromise under the Companies Act that resulted in the formation of the Nova Property Group, which now owns all the properties that were syndicated by Sharemax. Moneyweb said it seemed most investors chose debentures, with the value linked to the “fair market value” of the relevant properties, as determined by DP Cohen Consulting. The 2012 financial statements for Nova showed that the new debentures were valued at R2.1bn at end-February last year. The investors lost R2.2bn, or half of what they originally invested, it said. – Staff Reporter