What the flip went wrong with MultiChoice BEE share offer?
Shareholders in the Phuthuma Nathi BEE plan hoped to ‘flip up’ by swapping their shares for better valued ones, but the market had other ideas
It hasn’t been a great few weeks for shareholders in MultiChoice Group’s (MCG) BEE vehicle Phuthuma Nathi (PN). Since the video entertainment group announced the long-awaited terms of what’s being referred to as the “flip-up”, its sliding share price has made it steadily less enticing to the BEE shareholders.
In August MCG informed its BEE shareholders that they could swap a maximum of 20% of their PN shares at a rate of one PN share for 0.97 MCG shares. Nobody was impressed.
And as the MCG share price (https://www.sharenet.co.za/v3/quickshare.php?scode=MCG) dipped from the R130-plus level at which it was trading at the time of the announcement in August the PN shareholders have become even less impressed. On Monday MCG was trading at R119; comfortably off the R90.31 low it reached shortly after listing early this year but distressingly off the high of R138.49 it touched in July...