Bridgestone minority opposes buyout
Siseko Njobeni
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Trade and Industry Correspondent
A DISGRUNTLED Bridgestone Firestone Maxiprest minority shareholder wants to block the companyÆs proposed minority shareholdersÆ buyout scheme.
Last month the company announced its intention to buy out minorities, ahead of its proposed delisting, to pave the way for restructuring and the introduction of a black partner.
It offered minority shareholders 115c a share. It said 35,5% had given irrevocable undertakings to vote in favour of the scheme.
But one shareholder has come out against the offer, saying it is unfair and unreasonable.
Peter Burmeister said yesterday that shareholders should reject the offer. He said the company should pay shareholders 140c a share.
Burmeister also said there was a conflict of interest as the companyÆs 70% shareholder, Bridgestone SA, was also a supplier.
He did not agree with the companyÆs assertion that its poor performance was due to poor market conditions. ôSuch à conditions do not appear to have adversely affected the companyÆs competitors. They could have used the R55m they have set aside for the scheme to improve the business,ö he said.
The minority shareholders will vote on the offer next Monday.
Bridgestone Firestone Maxiprest company secretary Gordon Sinclair said yesterday that the three independent nonexecutive directors ôwhose primary responsibility is to look after the interests of minority shareholders, would not agree to the scheme if it was unfavourable to (them)ö.
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