Chief operating officer quits CCH, Infracom sold

By Iain Scott, ITWeb group consulting editor

Johannesburg, 17 Jan 2001

CCH`s chief operating officer, Andrew Sims, has resigned, along with two other directors, ahead of the group`s proposed acquisition by MGX. CCH has also sold Infracom for a maximum R210 million.

CCH`s official statement is that Sims, who was to be appointed MGX operations director after the acquisition by MGX, has resigned "in order to pursue new personal opportunities".

Sims, said by CE Aletha Ling to have "made a substantial contribution to the growth and development of CCH over the last five years", is to remain with CCH until the end of March to help out with the proposed integration of the two companies.

Sims, formerly MD of Computer Configurations, was appointed to the COO post in November 1999 when Rob Shuter resigned after only seven months to return to investment banking.

MGX CEO Chris Hills was in a meeting this morning and unable to comment on whether a new operations director has been appointed.

Directors Lufuno Nevuthalu and Hamilton Ratshefola have also quit CCH to establish a black empowerment initiative, Cornerstone.

Ling says CCH has appointed Cornerstone as a value-added reseller in certain product areas, and the companies will pursue joint contracts in government and parastatal markets.

Nevuthalu was a director of Yashu Trust, established to give previously disadvantaged employees of CCH a significant shareholding, while Ratshefola headed up CCH`s public sector-focused industry team.

Infracom, the remaining CCH division not acquired by MGX, is to be sold to Lisianthus, which is owned by Infracom management and Absa Corporate Bank, which is providing most of the funding for the deal.

The minimum disposal price is R165.125 million with an additional R44.875 million conditional on targeted earnings levels being met at Infracom.

CCH will, in line with the revised terms of the MGX deal, pay R86 million plus interest to MGX. The MGX shares received by CCH, as well as any excess cash, will be unbundled to CCH shareholders, after which CCH will be delisted and wound up.