LETTER: BEE a trap for some investors
BEE companies have become prisoners of the laws designed to promote their success
Trade & industry minister Ebrahim Patel’s statement that “BEE does not faze investors (https://www.businesslive.co.za/bd/companies/retail-and-consumer/2020-03-09-pepsico-deal-shows-bee-does-not-faze-investors-says-ebrahim-patel/)”, made after he struck a deal with PepsiCo on its takeover of Pioneer Foods, deserves reflection.
Consider the BEE investment holding companies HCI, Brimstone and ARC. Despite their reputable and highly regarded management, these companies now trade at huge discounts. Over the past year HCI has fallen about 75%, ARC is down 60% and Brimstone is down 31% (which is misleading as it is untradeable, and the best bid is currently 66% below its last trade). BEE shareholders who invested in these companies have become paupers...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.