JSE drops insider trading probe of former Advtech chairman

SOUTH Africa’s stock exchange has dropped an investigation into an insider trading claim made against the former chairman of private education firm Advtech following a takeover bid.

The JSE said on Monday it had found no reason to pursue the investigation, launched in July after an anonymous complaint into purchases of Advtech shares by the family trust of Jeffrey Livingstone, then acting chairman of the company.

The trust bought nearly R900,000 worth of Advtech shares on May 25 and 26 at under R10 per share, according to JSE data.

On June 25, the shares rose as much as 16% after the company announced it had received a buyout offer.

Advtech’s board eventually rejected the R13 per share bid from larger rival Curro Holdings, which Curro withdrew in late July.

Advtech had previously exonerated Mr Livingstone of any wrongdoing in connection with the trades.

It is not clear if the trust still holds the shares as Mr Livingstone, who retired at the end of June, is no longer required to disclose transactions in Advtech stock.

Source: Reuters