RESTRUCTURING
Why is Group Five's board so upbeat?
Acting CEO Themba Mosai has put in place ‘meaningful changes since his appointment at the beginning of March’
Group Five’s restructuring is progressing, says the group’s board. The company is restructuring following its operating loss of R338m in the second six months of 2016. Part of the loss resulted from agreeing to pay R225m towards a collective R1.5bn voluntary settlement. The settlement — a deal with the state involving seven other listed construction and engineering groups — is aimed at helping to transform the sector. In an update on Wednesday, the board said acting CEO, Themba Mosai, had implemented meaningful changes since his appointment at the beginning of March 2017. "The changes are aimed at unlocking shareholder value and addressing mainly the [unprofitable] engineering and construction cluster." The restructuring had resulted in the business being split into a South African construction business and a construction business serving the rest of Africa. There would also be a separate unit to service procurement, engineering and other construction businesses, the board said. Gro...
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