WATCH: Christo Wiese on why there is no room to negotiate on the buy-back deal
Shoprite plans to buy back deferred shares held by its chair, Christo Wiese, in order to simplify the company’s voting structure and curb Wiese’s influence.
The deal involves the repurchasing and cancelling of all of Wiese’s deferred shares 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 chief investment officer Karl Leinberger has come out strongly against the proposed transaction, saying 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.
But Wiese is adamant that there is no room for negotiation.
Wiese spoke to Business Day TV to give more details on the matter and discuss his position.
Shoprite chair Christo Wiese talks to Business Day TV to give more details on the plan to simplify the company’s voting structure
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