Wrap Text
Response to media reporting - reaffirmation of governance integrity
THE SPAR GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1967/001572/06)
JSE and A2X share code: SPP
ISIN: ZAE000058517
("SPAR" or the "Group")
RESPONSE TO MEDIA REPORTING - REAFFIRMATION OF GOVERNANCE INTEGRITY
The SPAR Group wishes to address media reporting published on 2 June 2026 by Business Day ("Business
Day Article"), and to provide SPAR shareholders ("Shareholders") and all stakeholders with an accurate and
complete account of the matters raised.
THE BDO REPORT
As noted in the Business Day Article, the referenced report prepared by BDO South Africa ("BDO") was
commissioned by Mr Amaan Sayed himself (who is also referred to as the complainant) as part of a standard
due diligence exercise for the proposed acquisition of a single SPAR corporate store at an acquisition
consideration of R4 million - the Bloed Street SuperSPAR and TOPS store ("Bloed Street Store"). The board
of directors of SPAR ("Board") wishes to be unequivocal on the following points:
• No reportable irregularities have been raised by our external auditor, PricewaterhouseCoopers
("PwC"), in respect of the Group's financial reporting or governance processes.
• The BDO engagement was a limited, single-store due diligence review, commissioned under
confidentiality arrangements. It was neither an audit nor a forensic audit of the Group's operations,
and it does not represent systemic findings across the Group.
• SPAR rejects any suggestion that Value-Added Tax ("VAT") fraud has been established. No finding of
VAT fraud has been made against SPAR or the corporate store concerned. The characterisation of
the matter as a "VAT fraud saga" is therefore totally inaccurate and misleading.
• To date, the only formal regulatory engagement has been with the South African Institute of Chartered
Accountants (SAICA), to which Mr Mike Bosman, the SPAR Group Board Chairman, has responded
fully in respect of the complaint laid by Mr Sayed.
Mr Sayed was bound by a non-disclosure agreement covering the BDO report. He further undertook that the
report would be deleted, an assertion confirmed by his attorney, who stated that he is no longer in possession
of the information relating to the subject matter and has deleted same. It is unfortunate that he has,
nonetheless, provided it to the media in breach of these undertakings.
CONTEXT
Shareholders should be aware of the following established sequence of events:
• Mr Sayed commissioned BDO to conduct a due diligence exercise in mid-2025 as part of negotiations
to re-acquire the Bloed Street Store, which he formerly owned.
• In February 2026, Mr Sayed signed a sale agreement for the purchase of the Bloed Street Store. That
agreement was, as is standard for all SPAR independent retailer transactions, conditional on SPAR
Guild of Southern Africa NPC ("Guild") membership approval.
• On 18 March 2026, the Guild - an independent body - declined Mr Sayed's membership application
on objective grounds: poor credit history and the need to protect the SPAR brand.
• Within days of that decision, Mr Sayed filed co-ordinated regulatory complaints aimed specifically at
SPAR's chairman, Mr Mike Bosman.
The Board regards this sequence of events as directly and materially relevant to any assessment of the
motivation and credibility of Mr Sayed's complaints. SPAR has said so openly and will continue to do so.
The decision to decline Mr Sayed's application for re-admittance was taken by the North Rand Regional
Committee ("Committee"), in accordance with its established governance processes, based on objective
criteria including credit history and brand stewardship; and supported by the Guild. The Committee stands fully
behind that decision. Any attempt to characterise a sound governance decision as anything other than the
proper exercise of the Guild's mandate will be firmly rebutted.
LEGAL ACTION
Regarding the complaints against SPAR Group Chairman, Mr Mike Bosman, and the request for a "delinquent
director" declaration, the Group stands very firmly in support of Mr Bosman's leadership and views the request
as baseless, vexatious, malicious and without merit.
CONCLUSION
SPAR remains committed to maintaining high standards of governance, compliance, ethical trading and
financial control. We continue to support entrepreneurial retailers and communities across South Africa. Where
concerns are identified, they are assessed and addressed through the appropriate internal and external
processes.
Shareholders are advised that the matters referred to in the article do not have any impact on the information
previously disclosed by SPAR to the market.
Shareholders and stakeholders with queries may contact: Investor Relations: ir@spar.co.za
By order of the Board
Umhlanga
3 June 2026
Sponsor
One Capital
Corporate Broker
Rand Merchant Bank, a division of FirstRand Bank Limited
Date: 03-06-2026 09:45:00
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