Johannesburg – Listed construction company Group Five is
going through a restructuring and is set to retrench.
In a statement issued on Wednesday, the embattled company
said most of its changes are aimed at unlocking shareholder value and addressing
mainly the loss-making Engineering & Construction (E&C) cluster.
The changes are being implemented by acting CEO Themba
Mosai, who joined the company in March. Group Five continues to seek a permanent
replacement, it says.’
It says the E&C Cluster has now been split into
Construction: South Africa, Construction: Rest of Africa and engineer, procure
and construct (EPC) sector businesses.
“These changes will result in more focused businesses
with appropriate resources and cost bases relevant to the regions and service
offerings provided.”
This change, it says, led to the implementation of
voluntary and forced retrenchments that are set to conclude at the end of June.
Group Five did not indicate how many people were affected
by the retrenchments.
The South African and Rest of Africa Construction
businesses will be led by the executive director of Construction, Mark
Humphreys, who has been with the group for 29 years.
Read also: More senior staff casualties at Group Five
Peter de Vries, who has been with the group for 11 years
and has significance experience in EPC contracting, will lead the EPC / sector-driven
business.
The group will continue to support and grow its annuity
and cash-generating clusters of Investments & Concessions and
Manufacturing. The strategic equity partnership with Aberdeen Infrastructure
Funds, currently being implemented in the Investments & Concessions cluster
and announced on December 5, is progressing well with only a number of outstanding
regulatory conditions to be met, says Group Five.
The group adds its Kpone Independent Power Plant (Kpone)
project is now approaching its completion phase.
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