Interim chairman for ConvergeNet Group, Sandile Swana, has reassured stakeholders that recent shifts in the company’s board of directors, and moves by majority shareholders to take controlling shares, would not have an immediate impact on the operations of the company.
Yesterday it was announced that three directors at the company had resigned with immediate effect – including chairman, Sindile Lester Peteni. All exiting directors sold off shares in the company, and Sandile Swana was appointed as interim chairman.
In a statement, Swana clarified that the shift would not have have an immediate impact on the operations of the company:
“I have taken note of the announcement on 22 February by a group of ConvergeNet shareholders that they have acquired a substantial shareholding in the company which, if combined with the holding of another shareholder would constitute a 53% majority shareholding in ConvergeNet,” he said.
“This take over was not initiated by the board, but the board will facilitate the mandatory offer as required by the regulators. The board of directors will consider that announcement in due course.”
Swana noted that, in accordance with the Companies Act, “no changes are permitted to the board of directors whether resignations or new appointments,” stating that “the recent director resignations had been received before the board was made aware of the change in control.”
He continued, stating that the events put the company at “the start of a process” and while offer proceedings go ahead, “the company’s focus will be on maintaining and expanding the business.”