The bizarre Texton Christmas proposal
Shareholders do not approve board decision to buy back BEE shares from the Public Investment Corporation
How appropriate was it that Texton’s shareholder meeting to vote on the buyback of shares from the Public Investment Corporation (PIC) took place just three days after Christmas? This was indeed a case of expecting turkeys to vote for Christmas. And guess what? They didn’t. On December 28 the Texton shareholders voted overwhelmingly not to approve the board’s decision to buy the BEE shares back from the PIC. This wasn’t a close affai; 100% of Texton shareholders said “no” to the bizarre proposal. The proposal would have obliged Texton to buy back about 50-million shares held by BEE shareholders who had been financed by the PIC back in 2014 when Texton was trading at R11.40. In terms of the deal that the PIC believed it had with Texton and the BEE shareholders, the repurchase would have to be done at R11.40. It would of course have been great for the PIC to get all R580m of its money back, but how was it possible that the Texton board ever agreed to buy back the shares. And, even m...