A Shoprite shareholder is contesting Steinhoff's controlling stake in Africa's largest retailer through its African subsidiary Steinhoff Africa Retail, or STAR, describing the transaction as a "classic abuse of a control structure". Zwelakhe Mnguni, chief investment officer at Benguela Global Fund Managers, told Business Times this week: "The manner in which control over Shoprite has been gained was covert and conflicted. "The final act was Shoprite taking a loan to Whitey Basson's shares for R1.7-billion and thereby tipping them over into an outright majority without triggering an offer to minorities, which would have meant a control premium would have to be paid." Mnguni added that "we see this [transaction] as a very strong reason for shareholders to get to work on dismantling control structures in this market". Benguela Global Fund Managers, a minority shareholder, holds a client portfolio of 3.1% which is invested in Shoprite. This week, STAR reported in a pre-listing statement...
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