RA offering shares

with ref to the recent letter going out to members = So, anyone buying in then?

How can they offer discounted rates ?

.....perhaps a new membership drive.....what share are being offered.... :huh:

Muhtiman wrote: .....perhaps a new membership drive.....what share are being offered.... :huh:

Phumelela

Bob Brogan wrote:

Muhtiman wrote: .....perhaps a new membership drive.....what share are being offered.... :huh:

Phumelela

.....thought as much....and so much for the R A and the operator being separate entities.....joined
at the hip....this is why owners have no clout....the R A is simply is an extension of the operator....

The RA is a company not for profit.

There is no rationale for the RA to buy about R50 million of Phumelela's shares.

I found this on the website of Norton Rose Attorneys. 'A non-profit company must apply all of its assets and income to advance its non-profit objects. It may not dispose of any of its assets or business to a profit company, except for fair value, unless the disposition occurs in the ordinary course of the activities of the NPC. The assets and income may not be distributed to the incorporators, members, directors or officers of a non-profit company, except as reasonable compensation for the services rendered by them.'

Looks like the RA has done something seriously wrong. They may lose their Tax Exemption benefit after this. :sick: :whistle:

How much per share are we being offered at? I've seen nothing in my inbox?

There are T&C's involved. You cannot do anything with the shares for a year. This disposal by P to the RA at a value less than market value indicates possible troubles are on the horizon. P must have desperately needed the cash. P is retrenching staff and I would notbe surprised to find a re issue of new shares and dilution of the old. Who is gonna get the short end of the stick?

I had an interesting discussion with an owner who is not an RA member yesterday. This guy has had horses for a long time but sees no benefits to being a RA member because he races a handful of times a year and never on the big days, basically only when Dean says his horse has a winning chance. In his words " Mike the times I go racing there's 200 paying owners and I can pick where I want to race, there is no benefit to joining the RA". What has upset the guy is Phumelela who are the major beneficiaries of his "investment" in horses have not acknowledged him for his contribution. He owns shares in 4 horses, but has owned as many as 11 at the same time. He estimates that he has little change in 5 million over the previous 10 years from buying, training fees, vets, etc.

Here is where it gets interesting. My viewpoint was that he didn't have a leg to stand on, as the membership of the RA was voluntary and open to all owners. He had made a choice and in my opinion he couldn't bitch because there was now a benefit that he wasn't entitled to. I likened the situation to members of a golf course - if you aren't a member you don't share members benefits. His response caused me to change my views. He said that I was understanding the benefit incorrectly. The RA was not rewarding its members, Phumelela were. His unhappiness stems from the fact that he is a contributor to Phumelelas turnovers by virtue of supplying the stock that punters have a bet on. He furthermore pointed out that some RA members who would be receiving the share offer DID NOT OWN ANY HORSES AND THUS WERE OF NO BENEFIT TO PHUMELELA. His views therefore were that every registered owner in the NHA books should have received the share option before those of an association who were in many cases, not owners.

I believe that he has a very valid gripe.

I have asked around.The RA controls Phumelela through the Racing Trust. The price for the shares are fixed at a special rate and no-one other than the RA and its members can buy the shares at that rate. Should the deal be scrutinized by auditors it could be found that the deal was not done in the ordinary course of business of Phumelela and the RA. Members of the RA and shareholders of Phumelela should put the directors to task at the next AGM.

Maybe these shares belong to the RA and they are offering " their shares " at a discounted rate ?

Bob Brogan wrote: Maybe these shares belong to the RA and they are offering " their shares " at a discounted rate ?

My understanding is that the RA owned shares are held in the Racing Trust and are not allowed to be sold.