COMPANY COMMENT: Group Five needs to provide more clarity
The construction company’s management should provide restructuring details soon. Shareholders deserve no less
Construction company Group Five’s fortunes have dipped over the past five years or so and signs of a recovery are not particularly evident. It is now undergoing a restructuring as it looks to stop spiralling losses.CEO Eric Vemer suddenly quit in late February, having been at the helm for barely two years. He had been groomed for the position and took over from Mike Upton in December 2014. The company was one of seven listed construction and engineering groups that were found to have colluded in the 2010 Fifa Soccer World Cup’s stadium projects and were made to contribute R1.5bn over 12 years to promote black ownership in the sector as part of a settlement with the government. This means the pressure on Group Five rises to improve returns to investors. Group Five released a brief statement on the JSE’s communications service Sens on Wednesday, saying little more than that it was splitting its businesses into new divisions. While some investors will be pleased with any update, the st...
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