The Johannesburg Stock Exchange (JSE) has warned bank and wealth management firm Sasfin of a potential suspension of its shares due to the company’s failure to submit its financial results on time, leaving investors in uncertainty. The JSE indicated that Sasfin had not provided its condensed financial statements within the required three-month period, leading to an annotation on its listing. If Sasfin does not submit these statements by October 31, 2024, a suspension may occur.
Sasfin is also contending with a R4.9 billion tax bill from the South African Revenue Service (Sars) related to illicit activities, including money laundering. Additionally, the South African Reserve Bank imposed a R209.6 million fine for historical noncompliance in its foreign exchange operations. Amid these challenges, Sasfin’s CEO, Michael Sassoon, noted efforts to enhance compliance after dismissing implicated employees.
Sasfin is in the process of delisting from the JSE, having offered nearly R1 billion to minority shareholders to take the company private. This offer represented a 65% premium over its average share price. The firm has also been reorganizing, selling significant business units to focus on expanding its wealth management division.