The company, which held investments in property and listed shares, is to be voluntarily wound up and delisted from the JSE Securities Exchange SA (JSE) in the next two to three months.

It is an indirect victim of the fallout at BoE in April last year that led to a takeover of the bank by Nedcor.

Commercial Finance Company (CFC), which owned 76% of Confed, was placed under liquidation by Nedcor in December. As a consequence, CFC will apply for Confed's liquidation early next month to try to realise its investment.

Confed chairman and MD John Swain said he and the other directors of CFC and Confed were disappointed about the companies' liquidation as CFC was 88 years old and was first listed on the JSE in 1984. Confed was listed in 1947.

"Both firms have a long history and that's why we are upset we're being liquidated," he said. Both firms had a "superior investment performance" in the past 10 years.

Swain said CFC had controlled BoE, along with BoE management. With the abolition of N shares in BoE, control fell away. But BoE still had a substantial 9% stake in CFC.

"It was at this stage we entered talks with BoE to buy them out of their investment in the CFC group."

In April last year, while negotiating with BoE, there was a run on the bank's deposits. Nedcor then took over BoE. After that, Nedcor and the Byrd Family Trusts had a 70% controlling interest in RNI. The 44% RNI stake in CFC and BoE's 9% gave Nedcor a 53% controlling interest, enabling the CFC liquidation.

Jun 10 2003 07:35:58:000AM Nick Wilson Business Day 1st Edition

Publisher: Business Day
Source: Nick Wilson