What goes around comes around - Daun moves to buy Kolosus
In 1995 Claus Daun sold off Silveroak Industries to Kolosus Holdings, then headed by Tito Vorster, for around R95 million ($11.4 million.) The sale led to the situation which precipitated the well-publicised court action between Seton and Silveroak that Seton won in Paris, but which then spilled over into the South African courts as Kolosus had effectively stripped Silveroak before selling off the shell.
Daun's offer to buy 90.76% of Kolusus may seem perverse, arriving as it did just days before the Pretoria High Court ruled the original agreement null and void, leaving Kolosus to pick up a bill for R88.5 million, payable to Silveroak's liquidators. But then again, at R1.31, Daun is getting Kolosus for less than the price of a loaf of bread. This is because the company’s debts are estimated to be in the region R130 million compared with assets of R70 million or 14 cents a share.
Daun is no stranger to the leather/hide and skin business as he previously held 90% of Silveroak which included such companies as African Hide Trading, Mossop Leathers and Exotan. After selling Silveroak, he bankrolled Springbok Trading, a hide and skin trading company which expanded into wet blueing and bought out Conshu, the largest footwear conglomerate in
He has not failed to convert any of these ventures into successful operations and there is no reason to believe that he will not do the same with Kolosus. Clearly having anticipated that potential outcome in the negotiations, Daun & Cie ktiengesellschaft stated that the judgement will not affect their offer in any way. All that remains now is official approval by the Competitions Board.
