Waiver enables share buy-back
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.