JOHANNESBURG (Reuters) – Shares of South Africa’s Hosken Consolidated Investments (HCI) fell as much as 6 percent after the firm suspended its executive chairman over alleged “gross misconduct”.
HCI said after the close of trade on Wednesday it had suspended Executive Chairman Marcel Golding pending an inquiry into charges “of a very serious nature warranting disciplinary action”.
However, it said in a regulatory filing on Thursday the allegations were “unlikely to adversely affect the operations of the company, or materially affect its financial performance”.
Investors hammered the stock in early trade, sending it down as much as 6.7 percent at one point. By 1040 GMT it had recovered some losses and was down 2.5 percent at 149.08 rand($13.60).
Investment firm HCI has stakes in several large South African firms, including hotel and gaming group Tsogo Sun and drinks firm KWV. Golding is HCI’s second-largest shareholder with around 7 percent of the company, according to Thomson Reuters data.
Golding, who could not be immediately reached for comment, has launched proceedings to stay the inquiry, the company said, adding its disciplinary process was due to proceed on Monday.
