Poynting CEO resigns along with asset sale

·23 Dec 2014

JSE AltX-listed antenna manufacturer Poynting announced that it has entered into a deal with its CEO Andries Fourie to sell some of the company’s divisions – worth about R30.4 million – to a new company he will establish.

Additionally, Fourie has resigned as CEO and director of Poynting, with effect from 19 December 2014, in order to allow him to “direct his energies in managing the Compart business”.

Fourie will also incorporate a new company (NewCo).

Juergen Dresel has been appointed as interim CEO, with immediate effect, while the board is considering the appointment of a new CEO to take the group forward.

As rationale for the deal, Poynting noted that several of the units being sold off have been incurring losses for some time.

The businesses – collectively referred to as the “Compart” businesses – include:

Poynting Antennas (after transferring out the Poynting Defence and Specialised and Poynting Shared Services divisions)
Poynting Direct
Poynting Hong Kong
A minority interest in CrunchYard

“The losses in Compart are too big relative to the profitable segments within the Group; and it would take significant time and further investment to make these businesses profitable,” the group said.

“It is uncertain how long it will take for these units to become significant profit contributors to the Group.”

The value of the net assets being disposed of is R30.4 million and the attributable losses thereto are R11.7 million for the year ended 30 June 2014, the group said.

Fourie’s trust will transfer 14,000,000 ordinary shares held by it in Poynting to NewCo in exchange for an issue of shares by NewCo, Poynting said.

NewCo will also take over loans and claims against the units for R35.8 million, which will remain outstanding on the loan account.