Report by the FSCA on the status of the Fortress REIT Limited and Lighthouse Capital investigation

September 3, 2019

The Financial Sector Conduct Authority (FSCA) has given an update on the Fortress REIT Limited and Lighthouse Capital Limited (formerly known as Greenbay Limited) market abuse investigation.


Fortress REIT Limited
We are satisfied based on evidence currently available, that there is no substance in the allegations made that directors, related parties and other parties believed to be related to either Resilient REIT Limited, Fortress REIT Limited, Lighthouse Capital and NEPI Rockcastle plc, were supporting the Fortress REIT Limited share price during the period 1 October 2017 to 28 February 2018 (investigation period).


We found no evidence that the share trades completed on Fortress REIT Limited by the alleged related parties’ accounts contravened section 80 of the Financial Markets Act 19 of 2012 relating to prohibited trading practices (price manipulation). The FSCA has now closed the investigation in this matter. If further evidence arises the investigation will be re-opened.


Lighthouse Capital Limited
The FSCA focused on market transactions executed prior to SENS announcements dated 31 May 2016, 21 September 2016, 30 May 2017, 16 March 2017 and 8 August 2017. All the SENS announcements related to Book Builds held by Greenbay Limited.


The FSCA has decided to close the investigation into insider trading (Section 78 of the FMA).


The FSCA is mandated to investigate, and in appropriate instances, take enforcement action in cases of market abuse on the financial markets. Three kinds of market abuse are prohibited in South Africa, namely insider trading, market manipulation (prohibited trading practices) and false reporting relating to the affairs of a public company. Our investigation procedures include interviews under oath, acquiring documentary evidence and obtaining assistance from foreign Regulators.

 

ENDS


Enquiries: Brandon Topham
Divisional Executive: Investigation and Enforcement
Financial Sector Conduct Authority
Tel: 012 367 7856
E-mail: Brandon.Topham@fsca.co.za

 

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