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I'm just picking up on some things mentioned in another thread about PPS's BEE deal. Unfortunately there is not a description on their website (and I'm too lazy to type it in right now), but basically it is being proposed that the surplus distribution policy be changed so that the surplus can be used to get 25% black economic interest.
Here is the email that I sent to them (not really researched at all, just my personal opinion),
Sieg, I'd like to see what you have to say about the transaction. Oh, if any of you are PPS members then please forward you concerns to both bee@pps.co.za, and atait@pps.co.za.
Here is the email that I sent to them (not really researched at all, just my personal opinion),
Hello,
Unfortunately my wife and myself received the information about the
BEE transaction late (it would seem our address is incorrect on your
system) and I'm only able to respond now.
We are very unhappy about the proposed BEE transaction. Essentially
you are taking money away from us and indirectly diluting our share
value with this transaction. I do not want this to occur. In my mind
it goes against the whole setup of PPS an undermines the character of
PPS.
I would like to challenge an assumption that you have made, namely the
one laid out in paragraph 5 of the information letter, than at the
"normal" growth rate the 25% economic interest would only be achieved
in 19 years. I'm sure that much consideration has gone into this from
your side, but what is to say that this "normal" growth will be
reflective of the future growth of black shareholders? With the
current dispensation in South Africa I would guess that there is a
strong chance that there will be a great many more black professionals
coming into circulation in the next 5-10 years - will this not affect
your numbers significantly?
Anyway, I don't have any thing serious to base my assumptions on, but
this deal is making me seriously consider whether I would like to be a
part of an organisation that imposes this type of transaction on its
shareholders. At the end of the day you are devaluing my investment in
your company.
Kind regards,
Unfortunately my wife and myself received the information about the
BEE transaction late (it would seem our address is incorrect on your
system) and I'm only able to respond now.
We are very unhappy about the proposed BEE transaction. Essentially
you are taking money away from us and indirectly diluting our share
value with this transaction. I do not want this to occur. In my mind
it goes against the whole setup of PPS an undermines the character of
PPS.
I would like to challenge an assumption that you have made, namely the
one laid out in paragraph 5 of the information letter, than at the
"normal" growth rate the 25% economic interest would only be achieved
in 19 years. I'm sure that much consideration has gone into this from
your side, but what is to say that this "normal" growth will be
reflective of the future growth of black shareholders? With the
current dispensation in South Africa I would guess that there is a
strong chance that there will be a great many more black professionals
coming into circulation in the next 5-10 years - will this not affect
your numbers significantly?
Anyway, I don't have any thing serious to base my assumptions on, but
this deal is making me seriously consider whether I would like to be a
part of an organisation that imposes this type of transaction on its
shareholders. At the end of the day you are devaluing my investment in
your company.
Kind regards,