Waiver en­ables share buy-back

Finweek English Edition - - MARKETPLACE -

Metro­file* an­nounced that share­hold­ers had agreed to waive the manda­tory of­fer to mi­nori­ties when its BEE part­ner, MIC In­vest­ment Hold­ings, sub­scribed to new shares that re­sulted in it hold­ing 35.6% of the com­pany. Nor­mally, any move above 35% by a party re­quires an of­fer to all other share­hold­ers, but as it was waived at the AGM, this is not an is­sue. What I think Metro­file is do­ing, is en­abling it to buy back shares. Pre­vi­ously, if Metro­file had bought back shares, the re­duced num­ber of shares in is­sue would have pushed the MIC stake through 35%, mak­ing it manda­tory to make an of­fer to other share­hold­ers (you can’t re­quest a waiver af­ter the event). Now that MIC is over 35%, Metro­file can use its cash pile not only to pay chunky div­i­dends but also to buy back shares. I sup­ported the waiver at the AGM and re­main a happy share­holder.

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