Group Five dives after CEO’s resignation
Group Five’s share price fell as much as 44% and closed 30% down at 75c on Friday after announcing CEO Themba Mosai had resigned.
Former Efora Energy CEO Thabo Kgogo has been appointed as interim CEO. Kgogo announced his resignation from Efora Energy with effect from January 30 three months ago in August.
Mosai was promoted to CEO in 2017 following the resignation of Eric Vemer ahead of an extraordinary general meeting called by institutional investor Allan Gray.
“The board and management team would like to thank Themba for his valuable contribution and dedication during the 15 years of service with Group Five, which period commenced in the role as MD for Intertoll Africa,” Friday’s statement said.
“As previously disclosed, Group Five is currently undergoing significant restructuring and resizing, with its future focus on developments, investments and concessions.”
In December, Group Five announced Anthony Clacher replaced Cristina Teixeira as CFO.
Along with other JSE-listed construction companies, Group Five has suffered from the scandals and fines following competition authority investigations into stadiums built for the 2010 soccer World Cup.
Its problems have been compounded by a disastrous project to build a power station at Kpone in Ghana.
On January 30, Group Five issued a statement saying it had adhered to an order to return $106.5m to the client, Cenpower.
Its final loss in the contract is being decided via a dispute resolution process.