7:20am Wednesday 8th September 2010
By Mike Didymus
A South African billionaire could gain control of a swathe of Croydon town centre today if his latest bid to increase his influence over property developer Minerva is successful.
Nathan Kirsh has already made two unsuccessful attempts for direct control of the company, which was forced to halt work on its £500m Park Place shopping development last year through lack of funds.
The 78-year-old’s holding company KiFin, which owns 29.9 per cent of Minerva, has tabled a series of resolutions for today's Extraordinary General Meeting, including replacing the chairman and chief executive with Mr Kirsh’s representative Philip Lewis.
If passed the resolutions could signal a relaunch of the suspended Croydon scheme, with KiFin expressing concern the current board had given up on the project.
A letter sent by Minerva ahead of today’s meeting, however, assured shareholders it was still working with the council to produce a masterplan for the site, which has almost destroyed the once-thriving St George’s Walk shopping precinct.
Passing trade has all but stopped along the deserted strip since Croydon Council forced traders to relocated by issuing a Compulsory Purchase Order in March 2005.
In the letter, Minerva director John Matthews said KiFin would make significant gains into taking control of the company if its resolutions were passed, without making any payment to shareholders.
KiFin has described Minerva as being in a perilous state and denied it was trying to control the company, calling the thought of having to consolidate the company’s £1bn debt “terrifying”.
Minerva has responded by suggesting KiFin is trying to scare shareholders and draw attention away from its surreptitious takeover.
St George’s Walk suffered a further blow earlier this year when the council announced it could no longer afford to fund Croydon Economic Development Company, which had been working to bring business back to the precinct in the wake of Minerva’s failed plan.
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