JOHANNESBURG, July 25 South Africa's Investec
, Nedbank and Sanlam said on Thursday
they had exposure to a failing building supply company First
Strut, whose chairman was shot dead in June.
Trade in First Strut's 925 million rand ($95 million) worth
of bonds was suspended last week following an
application to place the firm in liquidation, according to a
stock exchange filing.
Its chairman, Jeff Wiggill, was found dead with a bullet
wound to his head next to a luxury Bentley automobile in the
early hours of June 20 in the Soweto township that borders
Johannesburg. His wallet and cell phone were missing.
No arrests have yet been made, a police official said.
Investec spokeswoman Ursula Nobrega said the bank had lent
First Strut 240 million rand.
The loan was "fully secured on underlying collateral, which
is predominantly property," she said.
Its asset management arm had exposure to First Strut's
bonds, she said, without giving further details.
Lender Nedbank and insurer Sanlam also confirmed exposure to
First Strut, but declined to give further details.
First Strut, which does business under the name First Tech,
earlier this month applied for business rescue, saying its
financial position worsened following the murder of its
"The tragic demise of Mr Wiggill has placed not only the
company in a dire and invidious position but also the group as a
whole," First Strut said in the July 5 filing for business
"Since the demise of Mr Wiggill it has become necessary to
unravel a number of complex and intricate financial
transactions," it said, adding existing cash flow and funding
would not be sufficient.
The bonds were arranged by First Rand unit Rand
Merchant Bank and due to mature in 2016.