This is a Blog It post (somewhat edited in Typepad)
“RMB Asset Management is supportive of broad-based economic empowerment, as we consider it critical in ensuring long- term sustainable shareholder returns for any company participating in the South African economy. When considering matters pertaining to economic empowerment, we consider, amongst other factors, the following three questions: Firstly, is the proposal in the best long-term interest of shareholders (our clients)?
“Secondly, is the BEE proposal sufficiently broad based as to be consistent with the national imperative to correct the economic imbalances brought about by the inequitable policies of SA’s past? Finally, does the nature and spirit of the proposal resonate with the core values of RMB Asset Management?
“We find that, in accordance with these general principles, we are unable to vote in favour of the proposal currently before us,”
It would very surprising if this deal (Ayigobi/AMSA) flies. This corporate dissent is exactly what South Africa needs. I'll list the three requirements again
- Firstly, is the proposal in the best long-term interest of shareholders (our clients)?
- Secondly, is the BEE proposal sufficiently broad based as to be consistent with the national imperative to correct the economic imbalances brought about by the inequitable policies of SA’s past?
- Finally, does the nature and spirit of the proposal resonate with the core values of RMB Asset Management?
The conclusion that they aren't willing to accept the deal is left open to the reader. I somehow think the third requirement was overwhelming.
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