The last time something similar to this happened I ended up having to reinstall iTunes completely. When I go to Apps & Features and scroll down to iPod Support the "modify" button is greyed out, leaving my only option to uninstall. Today when I opened iTunes and plugged in my iPod I got a message stating that the software for my iPod was not installed correctly, and to repair iPod Support from the Apps & Features page of Windows settings. On some occasions, when I open iTunes after turning on my computer and logging in, before iTunes actually comes up I get an error message stating that iPod support has not installed properly and it asks me to hit 'OK' to install it. Quiver Tree Capital designs and implements empowerment related solutions that align the commercial interests of the existing shareholders and their empowerment partners.IPod software not installed properly For the last couple of weeks I've been having problems with my iPod nano showing up in my iTunes. So, if everybody loses from these structures, who do they lose to? Who wins?įor the answer to that question, I suggest you ask the banks. Traditional funded structures are no good for ordinary shareholders either. In other words, they have to provide capital at the very worst moment. The second is that, because of covenants in funding agreements, companies have to underwrite the banks loans if their share price falls past predetermined triggers. These structures are no good for B-BBEE shareholders. Given the gearing, black capital is lost first. The first is that traditional funded structures fail in adverse market conditions. Effectively, they bought a call option that may not have been cheap. They paid R190m and got no dividends like ordinary shareholders – these went in funding costs – but for potential upside. Do not make the mistake of thinking that the B-BBEE shareholders got a free ride. There are the B-BBEE shareholders – who in this instance really are some of the good guys – who invested real black capital that was wiped out. There is the downside after the B-BBEE SPV went insolvent that was wholly owned by the Grindrod shareholders. There is the opportunity cost to Grindrod shareholders of R1bn that could have been productively employed for six years. Preference shares stand first in line to receive dividends, so ordinary shareholders rights were eroded from 2014, first by a dilution of 8.39% and second by Absa’s senior preference shares that had to be covered by cash ultimately coming from shareholders. That is a real cost of R450m.ĭepending on how the deal was structured, Withholding Tax of 15% and from 2017, 20% may have been levied on the preference dividends. Given that the principal was R450m and the shares worth less than R300m, Grindrod shareholders had to cough up the funding – again through the purchase of preference shares from the B-BBEE SPV. Covenants in the agreements meant that Grindrod stood surety for Absa’s senior preference shares. The shares fell, the debt was not repaid, the shares were returned and the shareholders 8.39% dilution was reversed.Ībsa’s preference shares were repayable last year. Grindrod shareholders lent B-BBEE shareholders cash to buy shares in Grindrod. Let us unpack what has really happened here: Of course, the preference share funding remains outstanding with value as at the end of 2019 of R1.4bn. Since then, Grindrod has fallen 85% and R1.6bn has turned into R243m. In case you are doing the math, that’s R190m for 8.39% of upside exposure for the B-BBEE shareholders. This R560m, along with a further R400m in vendor preference shares and R450m in senior preference shares from Absa assisted the B-BBEE shareholders in subscribing for R1.6bn in Grindrod shares. In 2014, Grindrod consolidated its B-BBEE ownership into its listed entity at a cost of R560m. Hot on the heals of MTN Zakhele’s credit crunch comes another, this time from Grindrod.
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