Western Province boss Zelt Marais says Flyt Property Investment ’is being selective with the truth’.
Western Province boss Zelt Marais says Flyt Property Investment ’is being selective with the truth’.

Zelt Marias ’surprised’ MVM Holdings backing out Western Province of deal

By Wynona Louw Time of article published Dec 10, 2020

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CAPE TOWN - Western Province Rugby Football Union president, Zelt Marais says he was “surprised” by a statement released by Marco Masotti of MVM Holdings stating that they have ceased negotiations with the union.

This comes after the American company on Thursday communicated that they have decided to pursue other opportunities in rugby.

Earlier this week, various reports said that MVM Holdings could now look to close an investment with the Sharks as an alternative.

“Given the recent media speculation, we thought it was important to the players, coaches, management, sponsors and supporters of Western Province rugby to share that MVM Holdings has decided to cease negotiations with WPRFU and to pursue other opportunities in professional rugby,” the MVM statement regarding their dealings with the WPRFU read.

ALSO READ: Marco Masotti, WP Rugby make peace as negotiations continue

Marais, however, said that no official communication pertaining to this was received from MVM prior to the statement being released and that the union had been in the process of finalising the investment offer to MVM and other interested parties.

“We also only received it (the statement) earlier today,” Marais told Independent Media. “We are surprised in the communication as we are in the process of finalising the investment offer document for MVM and other interested investors. We were then to do the due diligence on all the parties that were serious to partner with WPRFU.”

Meanwhile, Flyt Property Investment CEO, Zane de Decker on Thursday also released a statement saying that they are claiming "damages" from the WPRFU over reneging on an agreement signed earlier this year.

ALSO READ: New deal 'bodes well for the sustainability of Western Province'

The claim arises from the WPRFU's "repudiation and breach of the binding agreements" that the parties were involved in back in June.

"Today, Flyt Property Investment and an associated company, Dream World Investments ('the Flyt Group') formally lodged a claim with the Western Province Rugby Football Union for damages," De Decker said in the statement.

The deal was being struck for the intended development of the Newlands rugby stadium and other properties owned by the WPRFU.

In the statement, Flyt says the WPRFU approached them seeking a R112 million loan to settle existing debt and to conclude a development agreement in June 2020.

The steps taken by Flyt are due to the WPRFU allegedly seeking a way out of the deal.

Marais said that the matter is being handled by both parties’ legal teams.

“The matter is being handled between the attorneys of WPRFU and Flyt, and we were very surprised in the media release by Flyt as we have an agreement in place that only joint media statements would be made, and that we would at all times act in good faith with each other.

“Flyt is being selective with facts, and WPRFU is taking legal advice whether it would be in breach of the agreement in releasing a media statement.”

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