4Sight shares sink on boardroom turmoil


4Sight shares sink on boardroom turmoil

Published Date: 2019-10-08 | Source: Stephen Gunnion | Author: Stephen Gunnion

4Sight shares sink on boardroom turmoil

Non-executive director Geoffrey Carter quit after he said his position had been compromised to a point of no return.

4Sight's shares tumbled as much as 29% yesterday after a director resigned due to a fallout with one of its major subsidiaries. The resignation came ahead of a special meeting scheduled this Friday, where a call will be made to reconstitute the group's board.

The new age technology investment group said Geoffrey Carter, the chairman of its audit and risk committee, had quit with immediate effect "due to the untenable situation at a major subsidiary level". It said this had led to executives of the unnamed subsidiary sending a variety of emails containing, amongst other things, false accusations and also looking to shake up the group's board.

4Sight listed on the JSE two years ago, with interests in telecommunications, media and property businesses. Since listing it has concluded a number of other deals to expand into mining, manufacturing and data analytics. Acquisitions include BluESP, Age Technology, Foursight Holdings and subsidiaries Visualities, Casewise and Fleek Consulting.

In a statement on the JSE's news services, Carter said the group's board, and specifically CEO Vincent Raseroka and mergers and acquisitions director Gary Lauryssen, were embroiled with various of the group's subsidiaries over breaches in corporate governance, financial transgressions and the continuous disagreements over the interpretation of certain clauses in the Sale of Shares Agreements. He said this raised statutory and regulatory questions.

Carter said his position had been compromised to a point of no return, where serious issues of financial irregularities had occurred, "yet no consequences, except an all-out battle of egos and clash of characters".

4Sight said it had made the JSE aware of the current situation with certain subsidiaries and the challenges facing the board.

Last month, the group said it had received a credible, non-binding expression of interest to buy all its shares. It said it had agreed to grant the potential buyer exclusivity.

Its shares closed 24% down at 16c. They can be volatile due to the low volumes that trade.

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