THERE is mounting criticism of Christo Wiese’s decision to exclude small shareholders from the recently announced €2.45bn fund-raising exercise that sees Jayendra Naidoo’s little-known Lancaster Group pick up a stake in the rapidly growing international retailer Steinhoff.Wiese awarded his own private company Upington Investment Holdings an opportunity to pick up an additional 314-million shares in Steinhoff at €5.05 each for a total outlay of €1.6bn.About 162-million new shares will be issued to Upington and it will purchase an additional 152-million existing ordinary shares currently held by treasury. Purchasing treasury shares keeps the issue of new shares within the 10% limit of the directors’ discretion.The deal increases Upington’s stake in Steinhoff to 23%, from 17% and increases the stake held by the voting pool, which is dominated by Wiese’s holding, to 33% from 32%. This puts the voting pool just 2% shy of having to make an offer to minorities.Institutional shareholders wi...
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.