hmmm, wasn't it just last year Heineken was hating on us so much they was canceling projects and threatening to take their beer and go home ..
— Simon Brown (@SimonPB) May 18, 2021
Special shares usually with high voting rights and often with limited or zero economic rights.
They enable insiders to retain voting control even while they may not actually control the company.
The most well known are the Naspers~N (JSE code: NPN) A shares that give control to a few parties.
Shoprite* (JSE code: SHP) has the same for Christo Wiese which he tried to sell back to the company. But they have zero economic rights and only are votable by Wiese
More recently it surprised many that while Remgro (JSE code: REM) owns a little over 31% of Distell (JSE code: DGH) they ave a pile of B shares that gives them 56% voting control.
In the older days, companies used pyramid structures, but those have long since largely left the JSE and no new ones can be listed.
The challenge is how to know about them? The annual report will detail them.
Generally, they don't matter massively, until they do. And then they matter. Wiese failed to receive the required number of votes to get back onto the Shoprite board in 2018, but then he used his special shares to basically override shareholders.
JSE – The JSE is a registered trademark of the JSE Limited.
JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.