PSG offer to share holder

[hippo]

Hi Folks. I need some help please.PSG is offering 1.5767 PSG Group Limited (PSG) shares for every one of my CPI stock. Why would it be to my advantage to take up the offer? What are the risks for me if I don't? Thanks in advance for your help

[Werner_1]

This is a rediculous offer. check the history of my comments, I chatted to Simon about this about last month, and it is actually hugely to our disadvantage if we accept. I am faxing the proxy through now to reject it! It was something like 5 times less value in the end if one accepts the offer (i could be wrong, but check the other comments).

[Pluto]

As a shareholder you would have got a booklet that explains everything. If you do the maths, PSG are offering to acquire your CPI shares at a huge discount to the current CPI price - it is a mandatory (but ridiculous) offer that they have to make because of their shareholding in CPI because of the JSE rules. So bottom line: reject the PSG offer and retain your CPI shares!!

[hippo]

Thanks Werner. Thats what I figured, more or less, but could not believe how bad it was. Now my next question. If I do nothing I remain a CPI shareholder, yes?

[hippo]

Thanks guys. Will do my rejection.

[Werner_1]

I think its always safer to officially reject the offer, you would have gotten an email from OST as well. you can reply to them and they will make your vote. I think if you dont take action it might be considered an "ABSTAIN" and then not counted... not sure though. Everyone must reject this offer to get the totals as high as possible...