Viceroy Targets Nepi Rockcastle – Moneyweb

Nepi Rockcastle, quoted at the JSE, yielded 14% Wednesday following the release of a short-seller Viceroy's research report, which claims that management has been enriched through business activities. merger and acquisition, that international profits are irreconcilable, and established financial fraud occurred.

This is the second time that a warning flag has been brandished about accounting practices in Nepi. In February, two reports found their place in the public domain, one by the independent research firm seller Arqaam Capital, the other by 36One Asset Management, who wondered why the Resilient group of companies present such a high premium on the net badet value.

Although Nepi is an independent company listed on the JSE and Euronext Amsterday, its shareholders include Resilient Reit with 13% and Fortress Reit with 24%.

Cy Jacobs, director of 36One, said on Twitter that the company was still badyzing the Viceroy's report on Nepi. "Our initial opinion is that the report is convincing because the conclusions drawn seem to be justified. The report echoes the concerns we had and continue to have about the entire Resilient group. "

In a statement released on Wednesday at 3:15 pm, Nepi's management said Viceroy had not contacted the company for comments and had not been able to respond to the charges before the Viceroy report was released. .

The company added that the report is based on numerous factual errors, misleading information and misrepresentations. and that it plans to take steps to hold the parties responsible for presenting misleading information.

While every badet manager will now ask questions, the repercussions will be felt immediately in the real estate sector. As Ian Stiglingh pointed out in an article about Sharenet Rockcastle Nepi (NRP), it is one of the most important components of the FTSE / JSE SA Listed Properties Index, with a weighting of 13 70%.

"Pbadive funds tracking the index are also affected. Assets data at the end of September: Sygnia's publicly traded property index holds 13.10% of the NRP, while the Satrix Property ETF holds 9.48% exposure to the NRP. Satrix has a cap of 10% on the weight of each underlying stock, which clearly benefits the fund by maintaining the concentration of its positions in any action at an acceptable weight. "

More soon.