Shareholders clash over share price at FSG
A storm is brewing at FSG, with shareholders voicing concerns about share transactions they believe may disadvantage minority investors.
Issues surfaced during and after the company’s recent Annual General Meeting, where some shareholders questioned whether directors and senior managers were acquiring shares from minority holders at prices that do not reflect current fair value.
At the centre of the debate is the purchase of thousands of shares at P2.80 per share—the price set when FSG delisted from the Botswana Stock Exchange in 2016.
Independent assessments cited by shareholders suggest the fair value may now lie between P7 and P9 per share, raising questions about whether minority shareholders have been exiting at below-market rates.
One transaction highlighted involves the acquisition of 35,359 shares at P2.80 per share by FSG Group CEO Fergus Ferguson, who joined the company in 2023. Shareholders argue that such deals raise governance concerns and call for greater transparency on how directors participate in share dealings.
Industry observers note that past transactions involving ALC Fund 1 linked to FSG were executed at higher prices, including P4.26 and P5.50 per share in 2020 and 2022, respectively.
This has fuelled debate over pricing consistency and whether minority shareholders are adequately protected. Analysts say the situation underscores the need for stronger internal controls and clear disclosure of related-party transactions.
Shareholders are urging regulatory authorities to review the matter to ensure compliance with company law and safeguard investor confidence.
Contacted for comment, FSG Chairman and major shareholder Bame Pule dismissed the allegations, saying: “The information you’ve been given is false. If you print it as outlined in the message above, then it will be defamatory, and I will take appropriate legal action.”
FSG Share Dealings Timeline & Key Facts
• 2016 – FSG delists from the Botswana Stock Exchange at P2.80 per share.
• 2020 & 2022 – ALC Fund 1 executes share transactions at P4.26 and P5.50 per share with BIHL.
• 2023 – Group CEO Fergus Ferguson joins FSG and acquires 35,359 shares at P2.80 per share.
• 2026 AGM – Shareholders raise concerns about pricing disparities and governance practices.
• Shareholder Claims – Minority investors may have exited at 28–40% of estimated fair value (P7–P9).
• Company Response – Chairman Bame Pule dismisses allegations, warns against defamatory reporting.