African Phoenix to buy preference shares of erstwhile Abil
CEO Siya Nhlumayo says African Phoenix will buy the shares because it has departed from all banking-related activities, which is what the legacy shareholders were invested in
African Phoenix Investments (API), the company that emerged when African Bank Investment Limited (Abil) came out of business rescue, is giving its preference shareholders a chance to offload their shares. API is shifting to an investment holding company and wants to establish a black fund manager structure that will invest in private equities. The company said it wants to repurchase all 13-million preference shares at R37.50 per share if 75% of preference shareholders vote in favour of this proposal at the annual general meeting in March.
If there are not enough shareholders in favour of the company’s proposal, API will repurchase preference shares only from shareholders who voluntarily choose to sell. Preference shares entitle shareholders to a fixed dividend. Though preference shareholders are not guaranteed to receive such dividends, they have a preferential right to be paid before ordinary shareholders and are second in line after creditors to be paid if the company goes b...