PPC and its investors have agreed to reshuffle the company's board, calling off a special shareholder meeting scheduled for next Monday.
“Shareholders are hereby notified that following discussions initiated by [Executive Chairman] Bheki Sibiya with a number of shareholders, the board of directors of PPC has decided to embark on a process that is much more likely to achieve the best outcome for the company and all of its shareholders,” PPC said.
The compromise comes as a blow to former PPC chief executive, Ketso Gordhan, who stepped down in September and had been on a list of nominees to serve on a new board. PPC said on Wednesday the reconstituted board would not include any recent permanent executives.
Using their more than 10 per cent combined shareholding, Foord Asset Management, Visio Capital Management and Nedbank Private Wealth had compelled PPC to arrange a special meeting on 8 December where investors would vote on whether or not the board should be replaced.
The reconstituted board will consist of 12 non-executive directors "and shall not include any current or former permanent executive directors of PPC who have served as such within the 10-year period immediately preceding the date of the AGM".
Five directors – Mangalani Peter Malungani, Sydney Knox Mhlarhi, Tim Dacre Aird Ross, Todd Moyo, and Bridgette Modise – will remain on the board, PPC said. While Sibiya will lead the board during the transition phase, he intends to step down once “stability has been established,” with Zibu Kganyago acting as his alternative following next year's annual general meeting (AGM), according to the statement.
The remaining six members of the reconstituted board will be elected at the AGM which is scheduled for 26 January 2015.
Meanwhile, the company would continue with the process to select a new CEO, "which could be completed prior to the AGM".
