BADGER
MICHAEL AVERY: Fortress shareholders held hostage by infelicitous structure
Proposal to amend memorandum of incorporation is to everyone’s advantage, despite the wailing
A proposal by Fortress management to amend the company’s memorandum of incorporation (MOI) has caused a great deal of wailing and gnashing of teeth among investors. While at first blush it seems certain classes of shareholders could feel justified in being pulled over the table, there is more to this story than meets the eye.
But first background to the structure. The practice of offering investors two share options that carry different distribution rights, which is unique to the SA listed property sector, was introduced nearly 20 years ago to cater for investors with different risk profiles. In fact, you might recall that ApexHi had three classes of shares at one stage...
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.