Johannesburg - The annual meeting of media group Avusa [JSE:AVU] was marked by the surprise resignation of its chairperson, advocate Dumisa Ntsebeza and two other directors on Monday.
Two non-executive independent directors, Tom Wixley and Babalwa Ngonyama also resigned. Ntsebeza refrained from commenting. 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.
According to industry rumours it is believed that the group's CEO, Prakash Desai was also planning to leave the company "soon".
"It's not clear what effect a possible departure will do to the share price. A lot of it has to do with who his replacement will be if he does eventually resign," a media analyst said.
At the AGM 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 SARS 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.
At market close on Monday, Avusa's shares were at R23.51, down 2.04% from its previous close.
Two non-executive independent directors, Tom Wixley and Babalwa Ngonyama also resigned. Ntsebeza refrained from commenting. 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.
According to industry rumours it is believed that the group's CEO, Prakash Desai was also planning to leave the company "soon".
"It's not clear what effect a possible departure will do to the share price. A lot of it has to do with who his replacement will be if he does eventually resign," a media analyst said.
At the AGM 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 SARS 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.
At market close on Monday, Avusa's shares were at R23.51, down 2.04% from its previous close.