Could Gordhan’s return plan to PPC materialise?

by Trust Matsilele 0

Ketso Gordhan could be back at South Africa's leading cement company, PPC less than a week after his resignation, media reports say.

The news of Gordhan’s resignation came as a shock to both the industry and the market as he was believed to be doing a good job.

(READ MORE: Ketso Gordhan resigns as PPC’s CEO)

His resignation as chief executive and executive director saw the company’s share price plunge eight per cent.

There has been conflicting reports on the reasons behind his resignation with some reports suggesting a conflict with the board over powers as a chief executive.

“PPC is a very large business in a much squeezed South African space and is trying to find expansion into the African region,” Cobie Lengrange told CNBC Africa.

“The company needs a strong leader who can take it from where it is today into a place where it can start earning margins again,” added Lengrange.

(READ MORE: PPC upbeat over African expansion)

Lengrange said with the company’s growth prospects into Africa, PPC requires strong leadership.

According to Lagrange, the company needs to escalate its African expansion and is adamant that Gordhan has a plan in place and knows how to unlock the challenge of growing beyond the South African borders through the organisation’s African expansion programme.

If Gordhan is reinstated as chief executive, analysts say this will be unusual as it had never happened for an executive to have a fallout with the board and get reinstated with support of major shareholders.

Gordhan’s possible successor will have to make sure he or she turns the company’s previous years’ negative numbers into positive.

According to Lengrange, PPC has always played a dominant role in the cement business and without a respected leader like Gordhan the company’s current position might decline further.