RTG taken to task

million RTG shares not subscribed during the group’s Z$80 billion rights offer in 2005.
He recently filed an interlocutory application at the High Court seeking an order compelling RTG to surrender some documents he feels were vital for his case.
The Briton, who has various business interests in most quoted Zimbabwean companies is seeking through the same court to compel the hospitality group to sell the shares to one of his vehicles, Mussina Investments. He argues that the underwriting agreement permitted him to buy the shares.
Mr van Hoogstraten, in his main court appeal, claims two companies that underwrote the rights offer later ceded them to him, which meant he was entitled to buy unsubscribed shares.
Through his lawyer, Advocate Lewis Uriri, Mr van Hoogstraten wants RTG to surrender minutes of all meetings of the rights issues.
He is also demanding copies of proof of payment for some shares. RTG is opposing the application.
Advocate Thabani Mpofu, representing RTG, strongly opposed the application, arguing that Mussina, by virtue of being a shareholder in the group, had no right to the documents.
RTG also argued that the High Court had no jurisdiction of hearing the matter and that Mussina, being a foreign company, should have furnished the court with security for the costs.
Justice Bharat Patel postponed the hearing on the interlocutory application. The share dispute began in 2005 when RTG decided to raise Z$80 billion through rights issue. CBZ Bank Limited and Syfrets Corporate and Merchant Bank were the underwriters.
Syfrets and CBZ Bank, however, later disposed of their shares to Barclays Nominees and Mussina Investments respectively.
Mr van Hoogstraten is claiming that the group’s management failed to honour an underwriting agreement entered into with Mussina.
The RTG board, led by the then chairman Dr Ibbo Mandaza and chief executive Mrs Chipo Mutasa, survived a bid by Mr van Hoogstraten to oust them from the company over the issue in 2006.