Shoprite investors 'misled'
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BARCLAYS de Zoete Wedd, one of the City's biggest securities houses, has come under strong criticism from leading institutions over its handling of a share issue.
Unknown to other investors, more than one-fifth of the food discounter Shoprite's pounds 15m preference share issue, which was launched earlier this year, ended up in the hands of BZW, the company's City broking advisers.
One source said: 'A number of shareholders feel that they were misled. They were told that the issue had been successfully placed, when in fact the company's advisers had a fifth of the issue.'
That means the Shoprite shares were less popular than had been generally believed. And there is a danger that BZW will want to filter its holding on to the market, depressing the preference share price.
The pounds 15m share issue was launched in February to help the group finance its store expansion programme. BZW was the largest taker, with more than 3 million shares. Other large takers included the investment institutions City Merchant, GRE Nominees and Scottish Amicable.
A fund manager added: 'If they had told us that they were going to end up with 3 million shares, there is no way that we would have taken any.'
BZW said that it was comfortable with the level of shares it had managed to place outside its own clients. 'We aim to manage issues, and to get 80 per cent away is seen as a success,' said a spokesman.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments