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Online Share Trading

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Capitec

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Werner_1
Super Contributor
Who here has CPI shares? Any comments on the offer from PSG yesterday? I want to keep my CPI shares, dont want this to happen but with PSG's 37% ownership they have lots of power... whats your thoughts?
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15 REPLIES 15
SimonPB
Valued Contributor
they making an offer .. you can decline to swap your CPI for PSG .. notwithstanding that the deal values CPI at aroudn 3600c ..
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Werner_1
Super Contributor
Thanks Simon, i will reject the offer. Capitec currently at R73 and deal valued at R36, this is totally unacceptable? Whats the chances that this will go through with PSG having 37% shareholding?
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SimonPB
Valued Contributor
zero .. who will willing give away 50% value ??
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Werner_1
Super Contributor
Excellent! I hope they dont pick up some shares to get over 50% though...
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Not applicable
Its a rediculous offer, makes me want to go out and buy PSG, in case it goes through! Because there is still a risk of some idiot / uninformed person approving this.
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Werner_1
Super Contributor
I agree, I just hope most of the shareholders actually put their vote through, i get the idea small investors dont really care much about voting... I see CPI is the largest contributor to PSG's intrinsic value and HEPS as well. no wonder they want to STEAL it from us...
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SimonPB
Valued Contributor
sure, but how many ?? it is a legal requirement that they make the offer and the price indicates they they frankly don't want or can't afford all of CPI .. probably latter ..
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SimonPB
Valued Contributor
not stealing .. it is a legal requirement .. and if you do nothing, you keep your shares .. you have to activate the swap .. and CPI market cap almost twice PSG ..
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Werner_1
Super Contributor
OK, i will keep my shares, thanks for the explanation Simon.
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Werner_1
Super Contributor
Just thought, why would PSG spend money to organise all this offer, get circulars out, get advice from investment bank, etc. on an offer that everyone will outright reject? or do you think their idea is to catch some uninformed people who think its a good deal and increase their share like that?
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SimonPB
Valued Contributor
because it is a legal requirememnt .. hence called a mandatory offer ..
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Werner_1
Super Contributor
OK, i never knew that. sorry. does that requirement kick in if they have a certain % of the company or how does it work?
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SimonPB
Valued Contributor
yip, 35% which is considered a controling stake ..
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Werner_1
Super Contributor
ok, thanks, i learnt something today!
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Not applicable
AS did I - Thanks Simon.
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