No room for negotiation on Shoprite share deal, says Christo Wiese
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Shoprite plans to buy-back deferred shares held by its chairman Christo Wiese in order to simplify the company's voting stucture and curb Wiese's influence. The deal will see all of Wiese's deferred shares being repurchased and cancelled in exchange for the issue of 20-million new Shoprite shares, which means Wiese will emerge with a voting and economic interest of 17.8%. On the day of the announcement Shoprite shares were trading at R178, putting a value of R3.56bn on the shares being granted to Wiese.
Coronation’s chief investment officer, Karl Leinberger, has come out strongly against the proposed transaction and says he will be recommending voting against the proposal because it is an extremely high price to pay to extinguish a comparatively low level of risk.
However Wiese is adamant that there is no room for negotiation.
Business Day TV spoke to Christo Wiese for more detail on the the matter.
Coronation’s chief investment officer, Karl Leinberger, has come out strongly against the proposed transaction and says he will be recommending voting against the proposal because it is an extremely high price to pay to extinguish a comparatively low level of risk.
However Wiese is adamant that there is no room for negotiation.
Business Day TV spoke to Christo Wiese for more detail on the the matter.
