News24.com | WP ‘won’t be rushed’ into deal with American investor

  • Western Province has reiterated that the much-publicised potential investment deal with MVM Holdings will not be rushed.
  • It also responded to Raymond van Niekerk, who resigned earlier this week as an independent director, saying that the departures of fellow independents Dr Johan van der Merwe and Andre van der Veen were lamentable.
  • Pressure is mounting from certain quarters for WP to clinch the deal but the union insists due diligence is part of its mandate.

The Western Province Rugby Football Union (WPRFU) says it will not be rushed into a deal with potential American investors MVM Holdings.

The union released a statement on Thursday, responding to the resignation of board member Raymond van Niekerk.

Van Niekerk was quoted after his resignation saying that the union’s decision not to renew the terms of two independent directors – former chairman Dr Johan van der Merwe and Andre van der Veen – as illogical.

Seasoned businessman Van der Veen was instrumental in sourcing MVM. 

“The WPRFU received the resignation of Mr Raymond van Niekerk as a member of the board and takes note of the subsequent comments and claims he made in a media interview,” the union said.

“We do not want to become involved in a war of words with Mr Van Niekerk and he is entitled to his opinion. We need to state unequivocally though that his claim that we have parted with logic is far-fetched. Logic is indeed the reason why we are not rushing into any deal with a potential investor or sponsor.

“Our focus now will be on finding a replacement for Mr Van Niekerk.”

Despite pressure from certain quarters mounting on the financially stressed union, it maintains that it’s merely fulfilling its mandate.

“Our mission, as mandated by the electorate (our clubs, schools, referees and associate bodies), are to manage WP Rugby wisely and responsibly and to restore the union to good financial standing. 

“A Non-Disclosure Agreement prohibits us from sharing any information regarding the negotiations with MVM Holdings publicly. We are, however, still in confidential negotiations with MVM Holdings Shell Company. WP Rugby provided MVM with the minimum terms and is awaiting feedback from them.

“We will continue to keep all our shareholders – including our professional players – informed as to the negotiations progress. We had fruitful meetings with our players, and they have distanced themselves from the media reports about their purported unhappiness over the past few days.

“WP Rugby will not be deterred by negative comments from people who have hidden agendas and ulterior motives and the leadership will continue to try and reach the best agreement for the union.”

– Compiled by Sport24 Staff

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