Sasol’s Chairperson Resigns Over Kinetiko Investment Link
Sasol, a South African petrochemical company, announced on November 14th that its chairperson, Sipho Nkosi, had resigned due to his connection to a controversial investment in Kinetiko Energy.
Background of the Investment
In October, Sasol revealed that it had invested $1.1 billion in Kinetiko Energy, a company that was founded by Nkosi and two other former Sasol executives. The investment was made without the knowledge of the board of directors, and it was later revealed that Nkosi had a financial interest in the company.
The Resignation
In a statement, Sasol said that Nkosi had resigned from his position as chairperson due to the controversy surrounding the investment. The company also said that it had launched an independent investigation into the matter.
Reaction from Shareholders
The news of Nkosi’s resignation was met with mixed reactions from shareholders. Some expressed their support for the decision, while others argued that it was too little, too late.
The Impact of the Resignation
The resignation of Nkosi has had a significant impact on Sasol’s stock price. The company’s shares have dropped by more than 10% since the announcement.
The Future of Sasol
Sasol has said that it is committed to restoring investor confidence and rebuilding trust in the company. It has also said that it will continue to focus on its core business and will take steps to ensure that similar incidents do not occur in the future.
The Role of the Board of Directors
The board of directors has come under scrutiny for its role in the Kinetiko Energy investment. The board has said that it was unaware of Nkosi’s financial interest in the company and that it was not involved in the decision to invest.
The Role of the Shareholders
Shareholders have also expressed their dissatisfaction with the board of directors. They have called for greater oversight and accountability from the board and have demanded that the board take steps to ensure that similar incidents do not occur in the future.
The Future of Nkosi
Nkosi has said that he will continue to serve as a non-executive director on the board of directors. He has also said that he will cooperate with the investigation into the Kinetiko Energy investment.
Conclusion
The resignation of Sipho Nkosi as chairperson of Sasol has had a significant impact on the company. The board of directors has come under scrutiny for its role in the Kinetiko Energy investment, and shareholders have called for greater oversight and accountability. Nkosi has said that he will continue to serve as a non-executive director on the board of directors and will cooperate with the investigation.