Gijima nonexecutive director Andrew Mthembu has resigned from the board of the troubled JSE-listed technology services company after nine years as a director. Mthembu was Gijima’s lead independent director and chairman of the remuneration committee.
The resignation is with immediate effect. According to a statement to shareholders, Mthembu has resigned to “pursue his own business interests”.
Mthembu is leading a project to build one of the world’s largest subsea telecommunications cables that will link Russia with China, South Africa, Brazil and the US along a 34 000km-long route. The project is meant to provide a dedicated link connecting the Brics countries, of which South Africa is one.
“The chairman and the board wish to express their sincere appreciation to Mthembu for his valuable contribution and support during his tenure as director of Gijima since 2005,” Gijima chairman Robert Gumede says in the statement. “He executed his tasks with passion and professionalism.”
Mthembu is a former deputy group CEO of Vodacom and a former MD of toll roads operator Tolcon.
Last week, shareholders in Gijima gave the green light to a proposed rights offer, in which it’s raising R150m “to ensure compliance with all its funding covenants” and to finance its working capital requirements.
Gijima announced the rights offer at the end of March after posting a loss of R106m from continuing operations for the six months ended 31 December 2012, from a loss of R69,6m a year earlier.
The rights offer is being done at 5c/share, a fraction of the 18c the share was trading at before the announcement. — (c) 2013 NewsCentral Media