JOHANNESBURG - JSE-listed horse racing and tote betting company Phumelela Gaming and Leisure has appointed Moses Tembe as its new chairman, taking the reigns from Bernard Kantor.
Kantor announced his retirement after the group’s annual general meeting (AGM).
Tembe joined Phumelela as lead independent director in 2018.
Tembe takes the chairmanship after the group announced last week that it is considering capital raise initiatives going forward after its profits for the year to end July were hard-hit by the removal of the group’s 50 percent share of the 6 percent levy on punters’ winnings on fixed-odd bets on horse racing in Gauteng.
As a result the group reported a headline loss of R98.2 million in its delayed results, compared to the headline earnings of R155.6m reported a year earlier, with the group admitting that it was its worst performance since 1997.
The group is still in talks with the Gauteng Gambling Board (GGB) in an effort to set aside the findings of the public protector Busisiwe Mkhwebane about the group’s share of the levy.
The group is also targeting a broad-based black economic empowerment (B-BBEE) equity ownership.
In paying tribute to the departing chairman, Phumelela said shareholders were advised that Kantor had retired with effect from January 21 after serving the board for the past 20 years.
“The board would like to thank Bernard Kantor for his contribution and leadership as chairman. The board also wishes Kantor every success in his future endeavours,” the group said.
In the AGM held on Tuesday, the shareholders opposed three resolutions that were up for renewal.
The group said the ordinary and special resolutions proposed in the notice of the AGM were passed with the requisite majority votes, except for two ordinary resolutions and a special resolution.
The shareholders voted against the placement of shares under the control of the directors, with 66.84 percent of the shareholders voting against it and the general authority to issue shares for cash was voted against by 67.23 percent of the shareholders.
Another unpopular resolution with the shareholders which was supported by a meagre 50.23 percent of the votes was a special resolution to give approval for the company to acquire Phumelela shares, while 49.77 percent of the shareholders were against the resolution. A special resolution requires a minimum of 75 percent of the shareholders to vote in favour.