Novus Holdings has scored a crucial legal victory over South Africa’s Takeover Regulation Panel (TRP), significantly boosting its chances of acquiring technology manufacturer Mustek.
The dispute stemmed from Novus’ acquisition of over 35% of Mustek shares in November 2024, triggering a mandatory offer to remaining shareholders. Novus offered R13 per share or alternatives, including R7 plus one Novus share, or a swap of one Mustek share for two Novus shares.
Despite the Competition Commission approving the deal in March, the TRP unexpectedly ordered Novus to withdraw and refile its offer. Novus challenged this ruling urgently, and on 26 April 2025, the High Court declared the TRP’s decision unlawful and unconstitutional. The court ordered the TRP to pay the application’s costs, including fees for two legal counsels.
As a result, Novus is now permitted to proceed with the transaction and must issue a circular to Mustek shareholders based on its original and supplementary firm intention announcements by early May.
Mustek shares are currently trading at R13.50, while Novus shares sit at approximately R6.50. The TRP has said it will review the court’s reasoning before determining further action, but it will not delay the transaction in the interim.
Although shareholder approval is still pending, the court’s decision removes a major regulatory barrier, making the Novus-Mustek merger increasingly likely.