Allan Gray promises to fight Shoprite bid all the way
Publish date: 12 January 2007
Issue Number: 1742
Diary: Legalbrief Today
Category: Corruption
Fund manager Allan Gray, concerned that the way the buyout of Shoprite is being handled could set a precedent for all future private equity deals in SA, is preparing to fight the deal all the way to the courts if necessary.
Business Report says frustrated institutional shareholders are hoping regulators will give them some relief from what they describe as an oppressive offer for their Shoprite shares, but Allan Gray, which holds 25.1% of the supermarket group on behalf of various clients, said it was determined to go to the courts if it got no joy from the Securities Regulation Panel or the JSE. A major concern for institutions is that aspects of the proposed bid to delist Shoprite do not become precedents for future private equity buyouts. This is why a number of fund managers have indicated they will fight the Brait-led deal all the way. The latest in a growing list of concerns that minority shareholders have with the proposed offer by Brait is that the last day to register for it was November 24 2006. This means any shares traded after this date would not have the right to participate in the option to continue with an unlisted investment in Shoprite. Full report in Business Report
