JSE-listed ConvergeNet says lead independent director Mpho Scott has stepped down, because of changes within the company, after a majority stake was bought out.
In February, a consortium, led by Trinity Asset Management, bought a controlling stake in ConvergeNet and said it aimed to oust several directors, including CEO Pieter Bouwer and Scott, in a bid to trim costs.
The consortium bought a controlling stake in ConvergeNet’s empowerment partner, Yellow Star. Together with other partners, Trinity now owns 53% of ConvergeNet, giving it a controlling stake in the listed ICT stock.
The consortium has issued an offer to minorities at 23c and will then call a shareholders’ meeting to remove Bouwer and several other directors from the company’s board.
Trinity CEO Quinton George said in February that the board needed to be cut from 13 to six. He said Bouwer, executive director Gordon Edwards, Scott and non-executive director Michelle Krastanov had been asked to resign in February, but did not do so.
On Friday, the company issued a statement saying Scott had resigned from 2 April. “This resignation comes as a result of the changes occurring within the company with respect to the change in control.”
It added that Scott was experiencing an increase in work schedule pressures. “The company wishes to thank Scott for the wealth of experience and contacts he has brought to the company over his tenure and wish him the best in his future endeavours.”
ConvergeNet will address the appointment of a new lead independent director in due course, to ensure compliance with King III and the JSE’s listing requirements.