JOHANNESBURG, June 3 (Reuters) - South African grocer Shoprite said on Monday it had terminated an agreement to buy back deferred shares held by its chairman Christo Wiese after failing to secure enough support from shareholders to back the move.
The deal, which would have significantly curbed Wiese’s influence in the company he helped turn into an African powerhouse, had aimed to simplify the firm’s voting structure.
“Shoprite Holdings received written notifications from more than 15% of other shareholders indicating that they will not vote in favour of the special resolutions,” the company said in a statement.
Shoprite’s capital structure includes ordinary shares and deferred shares, which carry about 32.3 percent of its voting rights. The deferred shares are held by Weise’s investment vehicle, Thibault Square Financial Services Proprietary Ltd. (Reporting by Tanisha Heiberg Editing by Edmund Blair)