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South Africa's Group Five to hold EGM, shareholder seeks board shake up

Published 10/06/2017, 01:14 am
Updated 10/06/2017, 01:20 am
© Reuters.  South Africa's Group Five to hold EGM, shareholder seeks board shake up
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JOHANNESBURG, June 9 (Reuters) - South African construction company Group Five GRFJ.J said on Friday it will hold an extraordinary general meeting (EGM) in July following pressure from its second largest shareholder Allan Gray, which wants to reconstitute the board.

Allan Gray, which owns 12.04 percent of the company according to Reuters' data, notified Group Five in May of its request to call an EGM to reconstitute the board following a disagreement with it on the future direction of the company. with Allan Gray in an attempt to address its concerns have unfortunately been unsuccessful," Group Five said in a statement.

Group Five, which also has operations in Australia, said the EGM has been scheduled for July 24.

The company recently cut jobs and split up its loss-making engineering and construction division as part of a restructuring spearheaded by newly appointed chief executive Themba Mosai.

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