By Alec Hogg
Predictably, the Abil story was top of Biznews pops again yesterday. We can only imagine what went through chairman Mutle Mogase and his board’s minds before deciding to part company with the long-time CEO Leon Kirkinis. It was one of those damned if you do or don’t choices. Yesterday the share price slumped to 50c – just 3% of where it traded a year ago.
In cases like this, where the company needs another capital injection, asset managers probably offered support only on condition management changed. But Mogase and his fellow directors are not in the business, so relied heavily on Kirkinis, believing he remained the best chance they had of righting the lilting ship.There’s a small mercy in all this. At least Biznews didn’t publish a call to buy Abil from some investment pundit. Been there, done that.
In early 2002, I was in Australia checking out the opportunity of establishing a presence there for Moneyweb. A colleague interviewed Saambou’s CEO Johann Myburgh and was so impressed with his version that the team at home decided to run a story headlined “Buy Saambou now” – the day before it was put into curatorship. Thankfully lightning didn’t strike twice.
Yesterday’s top stories:Â
David Shapiro on Abil, a bank in turmoil
Ex Abil CFO Dave Woollam gives expert analysis on Abil’s position; calls for calm
Nick Binedell steps down as Dean of Gibs
HSBC: Hot stock pick from leading fund manager. Time to invest?
Want to live in America? Go ahead
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