Tag: Group Five
A group of 48 Group Five shareholders are taking the construction company's business rescue practitioners to court. Sam Rosseau, Director at SWVG Inc Attorneys joins CNBC Africa for more.
The COVID-19 pandemic, coupled with South Africa’s slowing economy has created a double setback for the construction industry. That’s according to financial services group Old Mutual. Last month construction firms, Group Five and Esor, both in business rescue announced that they would be delisting from the JSE. Today, WBHO warned annual profits would plunge 150 per cent, reflecting the impact of the Covid-19 lock-downs. Ian Woodley, Analyst: Old Mutual Equities and Arthur Karas, Portfolio Manager: Old Mutual Investment Group Macro Solutions join CNBC Africa for more.
On Monday this week we saw the collapse of industry giant Group Five as it was put into business rescue with its stock being suspended after it filed for bankruptcy protection. There has been a significant decline of South African construction businesses and for more analysis on the construction industry CNBC Africa is joined by Jason Wilmot, former President of Master Builders Association North and Serfaas Badenhorst, Portfolio Manager at Momentum Securities.
Group Five, builder of the Johannesburg stock exchange building, has been placed in business rescue. The company has been suffering cash flow issues because of losses at some of its projects. The shares have been suspended from trading on the JSE. David Lake and Peter van den Steen of Metis Corporate Advisory have been appointed as business rescue practitioners. For more we are joined by Group Five’s acting CEO Dr Thabo Kgogo.
Another major South African company loses its CEO, this time it’s Group Five’s Solomon Themba Mosai, the now former CEO. Themba’s post will be filled by non-executive director, Dr Thabo Kgogo who is already holding the position as interim CEO. According to the company it is restructuring and plans to focus on developments, investments and concessions. The share price has tumbled since the day began. Viv Govender from Rand Swiss joins CNBC Africa for more.
Group Five cut jobs last year when it began the restructuring process.
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