Avusa chair, directors quit, CEO could follow

The AGM of media group Avusa was marked by the surprise resignation of its chairperson, Advocate Dumisa Ntsebeza, on Monday.

Business Day reported on Tuesday that Avusa’s chief executive Prakash Desai would also resign as shareholders showed frustration at the company’s apparent deteriorating financial position.

Two non-executive independent directors, Tom Wixley and Babalwa Ngonyama also resigned.

Though Ntsebeza refrained from commenting on his exit, Wixley said shareholders had interfered with board responsibilities.

“It is their company, I acknowledge that. But once a board has been put in place it must be allowed to run the company,” he said.

At the AGM, held in Johannesburg, Ntsebeza said the bid for Avusa, led by private-equity firm Capitau, did not go through as the deal had been impeded by tax-related regulations.

The consortium was unable to provide the group’s independent sub-committee with a clear process, nor defined time frame, for obtaining the required South African Revenue Service and national treasury approvals for the deductibility of the interest relating to the funding of the proposed transaction.

The media company received an unsolicited expression of interest in March to acquire its entire issued share capital.

Staff at the Sunday Times, the Times, Daily Dispatch, the Sowetan, Sunday World and the Herald have also been told to cut costs by about 20%

At market close on Monday, Avusa’s shares were at R23.51 down 2.04% from its previous close. — Additional reporting by I-Net Bridge

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But it comes at a cost. Advertisers are cancelling campaigns, and our live events have come to an abrupt halt. Our income has been slashed.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years. We’ve survived thanks to the support of our readers, we will need you to help us get through this.

To help us ensure another 35 future years of fiercely independent journalism, please subscribe.

I Net Bridge
Guest Author
Advertisting

Stella set to retain her perks

Communication minister will keep Cabinet perks during her two months of special leave

Not a sweet deal, Mister

Mister Sweet workers say they will not risk their health, and the lives of others, to continue producing and packaging confectionaries

Covid-19 grounds Nigeria’s medical tourists

The country’s elites, including the president, travelled abroad for treatment but now they must use the country’s neglected health system

Nehawu launches urgent court bid over protective gear for health...

The health workers’ union says the government has rebuffed its attempts to meet about mitigating risks to workers

Press Releases

Rahima Moosa Hospital nursing college introduces no-touch facial recognition access system

The new system allows the hospital to enrol people’s faces immediately, using artificial intelligence, and integrates easily with existing access control infrastructure, including card readers and biometrics

Everyone’s talking about it. Even Kentucky

Earlier this year South African fried chicken fast-food chain, Chicken Licken®, launched a campaign for their wallet-friendly EasyBucks® meals, based on the idea of ‘Everyone’s talking about it.’

New energy mix on the cards

REI4P already has and will continue to yield thousands of employment opportunities

The online value of executive education in a Covid-19 world

Executive education courses further develop the skills of leaders in the workplace

Sisa Ntshona urges everyone to stay home, and consider travelling later

Sisa Ntshona has urged everyone to limit their movements in line with government’s request

SAB Zenzele’s special AGM postponed until further notice

An arrangement has been announced for shareholders and retailers to receive a 77.5% cash payout

20th Edition of the National Teaching Awards

Teachers are seldom recognised but they are indispensable to the country's education system

Awards affirm the vital work that teachers do

Government is committed to empowering South Africa’s teachers with skills, knowledge and techniques for a changing world