BUSINESS MAVERICK: Shoprite’s R3.3bn payout proposal to Christo Wiese could easily be voted down

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BUSINESS MAVERICK: Shoprite’s R3.3bn payout proposal to Christo Wiese could easily be voted down By Tim Cohen tim_cohen

It’s complicated. It always is. Years ago, when Pepkor was just a little fledgeling thing, shareholders agreed to give its dynamic founder Christo Wiese special voting rights in order to protect the growing entity from rapacious competitors who might have bought it to close it down and remove a competitor.

The board’s argument is that the deal would simplify the company’s voting share structure and align the company with international best corporate governance practice. This is because all the shares after the deal would have the same voting rights. This, the board said, would appeal to institutional investors and would have increased a positive demand for the company’s shares.

Karl Leinberger, Chief Investment Officer at asset management company Coronation, which holds about 5% of Shoprite on behalf of clients, said the company would recommend voting against the board’s proposal. Coronation is the largest institutional shareholder of Shoprite outside of the Public Investment Corporation and Wiese’s investment entities.

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Former Steinhoff Chairman Christo (I know nothing, I am the victim) Wiese who presided over the biggest financial disaster in SA, should all his assets frozen NOW. It will be immoral not to vote this down, otherwise you are all accomplices

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