While it is not yet clear to the JSE whether or not the trade should be considered suspicious, the trading of more than 7 million shares in a single transaction on May 11 – only two weeks before Tiger wheels issued a cautionary announcement – is an event that contrasts markedly with the preceding low trading activity in Tiger Wheels shares.

The cautionary, published on May 30, said the performance of its 74% held global wheel manufacturing business, ATS GmbH, had failed to meet the expectations of the revised performance forecast made to its German financing syndicate in February. However, the JSE reportedly had no knowledge of the May 11 transaction until Business Day, one of South Africa’s leading financial newspapers, brought it to the stock exchange’s attention.

The trading activity in question involved about ten per cent of the company’s 59.6 million shares. It is not clear at this stage whether insider trading is suspected.