South Africa’s stock exchange has dropped an investigation into an insider trading claim made against the former chairman of private education firm [DATA ADH:Advtech Limited]following a takeover bid.
The Johannesburg Securities Exchange (JSE) said on Monday it had found no reason to pursue the investigation, launched in July after an anonymous complaint into purchases of Advtech shares by the family trust of Jeffrey Livingstone, then acting chairman of the company.
The trust bought nearly 900,000 rand’s worth ($66,000) of Advtech shares on May 25 and 26 at under 10 rand per share, according to JSE data.
On June 25, the shares rose as much as 16 percent after the company announced it had received a buyout offer.
Advtech’s board eventually rejected the 13-rand-per-share bid from larger rival Curro Holdings, which Curro withdrew in late July.
Advtech had previously exonerated Livingstone of any wrongdoing in connection with the trades.
It is not clear if the trust still holds the shares as Livingstone, who retired at the end of June, is no longer required to disclose transactions in Advtech stock.