GENERAL | ALGEMEEN
TOEKOMSFOKUS
traded at very low levels. Eventually shares did not trade at all but
were sold on auction, often with no bidders showing interest.
The shareholders were, understandably so, not impressed with
the results of the group and shareholder activism led to changes in
the board and management in October 2001. The former Vaalharts
members also filed a lawsuit in an attempt to recover lost value and
reclaim their members’ funds.
By that time the financiers of the group, with the exception of the
Land Bank, threatened liquidation of the company. The 'new' board
was, however, able to convince them not to do so and had to pre
sent a detailed business recovery plan to prevent disaster.
In hindsight, it became clear that the ex-co-op was just not
geared in terms of structures, systems and people to manage this
rapid growth. Whilst attempting to resolve the “problem children”,
the core business suffered and the debtor book grew beyond sound
parameters.
To add to its woes, in May 2002 a group known as Landboulex
launched a hostile takeover attempt and threatened legal action to
recover the shareholders' destroyed value. For this to happen, they
proposed that the board be removed.
In November 2002, shareholders rejected the proposed resolu
tion with a vote of nearly 80% and mandated the board and
management to proceed with the turnaround of the group. However,
the issue of destroyed value as the elephant in the room still had to
be addressed. Claims for negligence were instituted against pre
vious management and board members, as well as external audi-
tors, and added to the volatility in addressing the many challenges
that the company had to deal with. To prove these claims became
extremely difficult as documentary evidence and records were not
readily available, the Kolosus head office was destroyed in a fire
(very convenient) and potential witnesses were not keen to become
involved. The claims were eventually settled. During this time, and to
ensure the survival of the company, loss-making business units and
branches were sold or closed down and the staff complement of
nearly 10 000 employees, was substantially decreased.
Reflecting on the progress made to date with the recovery,
creation of value, capital growth and dividend yields since those
unfortunate times, that era in the company’s history should rather be
forgotten.
However, it is not as simple as that, as huge lessons were
learned. The recent Steinhoff saga is a sad and stark reminder to
the individuals close to the action of the importance of honesty, dili
gence, integrity, ethical conduct, transparency and accountability
to always act in the best interest of the company. By not doing so,
the consequences are severe. By continuing to learn and heed the
past, this local agricultural giant will have a future and will prosper
for another 110 years!
IS DIE GROOT 5
DEEL VAN JOU BOERDERY?
Hoe doeltreffend gebruik jy die
GROOT 5 in jou besigheid?
29 Oktober 2019
8:00 vir 9:00 | Nampo Park
Wees deel van die bespreking saam met
ervare produsente in die bedryf.
R100 per persoon
[ Spitbraai ingesluit ]
Gaskunstenaar:
Appel
PRAKTIESE
DEMONSTRASIES
RSVP voor of op 15 Oktober by:
Fondse ten bate
van die
Jongboerkomitees
van Agri NW en
Vrystaat Landbou.
Shevaun Haig: [email protected]
018 464 7129
Elize Spence: [email protected]
051 444 4609
Marlize Fritz: [email protected]
018 632 3612
SENWES SCENARIO | SOMER • SUMMER 2019
19