FSCA investigates potential insider trading in Curro Holdings shares

The Financial Sector Conduct Authority (FSCA) has confirmed an investigation into potential insider trading involving Curro Holdings shares. The probe follows a R7.2 billion ($450 million) buyout offer from the Jannie Mouton Foundation to acquire the remaining shares of the private school group and convert it into a public benefit organization.

The investigation was prompted by suspicious transactions reported by statutory bodies such as the JSE or Strate. A market analysis identified three sets of unusually timed transactions occurring in the six months prior to the buyout announcement: purchases by the foreign nominee account Citiclient Nominees No. 8, acquisitions by the Public Investment Corporation (PIC), and share purchases by three companies owned by the Jannie Mouton Family trust.

Following the announcement of the buyout plan, Curro’s share price experienced a 60% increase. Regulators are scrutinizing whether these trades were based on non-public, price-sensitive information. The FSCA is currently in an assessment phase to determine if the facts warrant a formal investigation, which would grant the authority additional powers to compel testimony and the production of documents.