WPP Scangroup’s #ticker:SCAN founder and long-serving chief government Bharat Thakrar has been suspended from the advertising companies agency over unspecified allegations of gross misconduct.
Mr Thakrar, 69, was suspended alongside the chief finance officer Satyabrata Das, efficient at this time.
“WPP-Scangroup Plc broadcasts that the board of administrators has suspended the employment of the Chief Govt Officer, Mr Bharat Thakrar and the Chief Finance Officer, Mr Satyabrata Das to permit for an investigation into allegations of gross misconduct and potential offences of their capability as senior executives and staff of the corporate,” the Nairobi Securities Alternate-listed agency stated in an announcement.
“Additional bulletins regarding this matter will probably be made when applicable. In the meanwhile, subsequently, shareholders and traders are suggested to train warning when dealing within the firm’s securities.”
Scangroup’s shares traded down on the announcement, touching a brand new low of Sh5.3 in mid-morning transactions.
Suspension of the CFO signifies that the allegations going through the executives could possibly be monetary in nature.
That is the primary time a chief government of an NSE-listed agency has been suspended or sacked publicly for moral misconduct. Most corporations have opted to not disclose the explanations for the sudden departure of their leaders.
Mr Thakrar has been the face of Scangroup which he took public on August 29, 2006 in an preliminary public providing (IPO) that raised Sh94 million.
He was the highest shareholder on the time with a 28.53 % stake and his holdings was at one time valued at greater than Sh1 billion. His possession now has a market-to-market worth of about Sh250 million.
He bought his shares through the years, contributing to his possession dropping to the present 10.6 %.
UK-based conglomerate WPP alternatively raised its stake within the firm to a controlling 56.3 % via a mixture of share purchases and folding a few of its subsidiaries into Scangroup.
The chief working officer Alec Graham will take the helm on an interim foundation, the board stated.
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