Tension builds
Group Five on shaky ground after board scuffle
Uncertainty ahead as construction company and Allan Gray go head to head over strategy, board composition
Group Five continues to keep the market guessing about its future ahead of an extraordinary general meeting on July 24 to replace five nonexecutive board directors, who have resigned from that date. The drama comes as Group Five is looking to sell at least 40% of its domestic assets to empowerment partners in line with a “voluntary” settlement agreement with government over transformation. Amid a recent spate of director resignations, Group Five executive committee member and head of developments Themba Mosai was confirmed as CEO. This came after the company in February said — without explanation — that CEO Eric Vemer would leave the group in a matter of weeks. Since then, there have been reports that certain current or former board members have been pursuing their own agendas, while dismissing shareholder concerns. In this regard, the current crop of departing directors say they do not agree with Allan Gray’s view over the future of the company, which “involves unbundling significa...
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