PSG: Not really a buyback
PSG Group says it has significant support among shareholders for a plan to refinance its hitherto successful funding structure by buying back its perpetual preference shares at a cost of R1.4bn. With interest rates drifting down over the past 18 months, it no longer sees perpetual prefs as the most effective funding arrangement
PSG Group, the Stellenbosch-based investment group, has unexpectedly opted to refinance its "expensive" funding structure by buying back its perpetual preference shares (prefs) for R1.4bn.
The issuing of perpetual prefs to raise fresh capital was initially seen as the most appropriate funding model for PSG — essentially ensuring permanent capital without refinancing risk...