Corpcapital, the financial services firm that earlier this year was overshadowed by allegations of poor corporate governance, has disposed of two divisions in a bid to focus on its property business and private equity investments.
Jeff Liebesman, the chief executive, said the revised strategy was to enable the group to "very tightly focus on developing its property business, which included asset management and consulting and to continue focusing on its investments and private equity portfolio".
Allegations of corporate greed and bad governance were dismissed by a report by Nigel Payne - who did, however, recommend that Corpcapital improve the number of non-executives on its board.
The composition of the board, following yesterday's announcement, now reflects the recommendations of the Payne report, with five non-executive and four executive directors.
Corpcapital managing director Martin Sacks has resigned but will serve as a non-executive board member from June 30. This follows the appointment of Douglas Brooking, the former deputy chairman of Deutsche Bank South Africa, as a non-executive director to oversee the unlocking of shareholder value .
Sacks, who announced his resignation to pursue investment and business opportunities outside the group, will sit on a board committee responsible for implementing the revised strategy.
The strategy included a responsible realisation of Corpcapital's investments, the return of capital to shareholders, curtailing new investments and building the company's property business, Corpcapital said.
As part of this strategy the Cape Town business will be taken over by Keystone Equity Partners, formed by Corpcapital Cape Town staff. Barry Kalkhoven, an executive director and managing director of Corpcapital Bank, which has been closed, will head up Keystone Equity Partners. Kalkhoven has resigned from Corpcapital with immediate effect.
Corpcapital Corporate Finance (CCF), has been bought out by Java Capital, a company formed by CCF management.
Liebesman said that with the negative publicity around Nic Frangos's allegations on corporate governance abuses, it had proved difficult to attract third-party business.
Corpcapital closed 5c up at R1.21 yesterday.
Publisher: Business Report
Source: Samantha Enslin
Corpcapital disposes of two of its divisions.
Posted On Tuesday, 08 April 2003 02:00 Published by eProperty News
Corpcapital, the financial services firm that earlier this year was overshadowed by allegations of poor corporate governance, has disposed of two divisions in a bid to focus on its property business and private equity investments.
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