Peter Staude, Tongaat Hulett’s former long-serving CEO, has resigned from Hulamin, the listed aluminium supplier said on Wednesday.
Staude’s resignation comes as the controversy about Tongaat’s past financial statements deepens. The agriculture and agri-processing company has been conducting a strategic and financial review since February.
As the scandal in which Staude could be a central figure swirls, trading in the group was last week suspended on the JSE and in London.
Hulamin, which unbundled from Tongaat in 2007, said Staude will retire from the board at the end of June.
Staude, who retired from Tongaat in October 2018, has been on the Hulamin board since 2007. He first joined in 1978. In 1990 he became MD of Hulamin Rolled Products and in 1996 was appointed MD of Hulamin. He was appointed CEO of Tongaat Hulett in 2002.
Like Tongaat, Hulamin, a manufacturer of aluminium rolled products, has been struggling. In May, the company’s division Hulamin Extrusions said it was considering retrenchments.
Analyst Chris Logan, of Opportune Investments, said Staude’s departure presented an opportunity for Hulamin to reduce the number of its board members.
Logan said a company the size of Hulamin should not have a 14-member board, more than Anglo American, which has 12 board members. Hulamin has a R1bn market capitalisation. When it listed on the JSE, it had a market capitalisation of more than R8bn.
“Not replacing Staude will be a step in the right direction for the company. But, over and above that, they should reduce the size of the board further. It is not only the board that is bloated. A company the size of Hulamin should not have 13 executive directors. The only thing that is not bloated at Hulamin is the share price. I am concerned about the share price,” Logan said.
Hulamin shares were unchanged at R3.20 on Wednesday. The stock is down 27.11% since the beginning of 2019.
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