Institutional investors in Comparex have succeeded in ousting five of the group`s non-executive directors.
The Comparex share soared last week after it became known that Allan Gray, Investec Asset Management and Sanlam Investment Management were moving to have the five non-executive directors replaced with their own nominees.
This would give them a 50% representation on the board.
Comparex has announced that "a satisfactory transition process has been established" and the five, non-executive chairman Russell Chambers, Desmond Arnold, David Erasmus, Douglas Henwood and Herbert Hetz, "believe that it is in the best interests of the company to resign with immediate effect".
The institutions said last week they would call a special general meeting to call for the five to resign.
An analyst says the fact that the resignations took place before the meeting indicates that Comparex had no doubt about how the meeting would turn out.
It also averts the possibility of any hostile confrontation at the meeting, which, he adds, is not likely to take place now that its objectives have been met.
He adds that with the negative shareholder sentiment about the fact that the company has been sitting on a R3.5 billion cash pile, the decision not to resist the institutions` demand was the right one.
Comparex has adopted a no-comment policy on the issue, but it is expected to post a special circular to shareholders outlining its position.
The group`s share was trading at 790c on the JSE by late this morning, up 20c or 2.6% from yesterday`s close.
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