Headquartered in South Africa, the infrastructure, energy real estate sectors and resources firm: Group Five, is a group that works on investment, project development, operations and maintenance, construction, as well as the manufacturing supply of construction products.
However, even though Group Five’s office is specifically focused on the sub-Saharan Africa, the group also operate in several countries in Europe, the group also has an estimated employees of over 8000 people with operating experiences in over 28 countries.
Given the fact the Group Five is one a widely known firm when it comes to infrastructure development, the group has undergone a revamp of its business model, re-positioning the group (Group Five) so as to become an enabler for infrastructure development which is a part of Group Five’s action to challenge underperforming operations in a faster changing industry landscape.
In accordance to this, on November 7, 2017, Group Five announced its investment and concession cluster, which includes its European and African toll road concessions, as a central to this new focus. This is as the European business has given them supplies much of Group Five’s gains in the previous years, due to deteriorated construction markets brought by poor government infrastructure spend.
In addition, the European assets also issued exceptional annuity profit. Themba Mosai, Chief Executive Officer of Group Five claimed on November 7, 2017 that the board and management have carefully looked at all their operations to verify a sustained operation going further. Mosai also added that they see a better and increasing for for being an enabler for the development of infrastructure projects, even though there is a persistent market and economic changes.
These statements were based on Group Five’s reviews and evaluations against certain criteria that determine their alignment with Group Five’s refurbished strategy. Themba Mosai said that the criteria included internal competency, anticipated market opportunity as well as capacity and capital risk management; in which, those businesses that has a high likelihood of meeting or exceeding Group Five’s targeted return on capital will be maintained.
In accordance to this, the group (Group Five) received a number of expressions of interest from credible parties, however, these interests lets a proposed R1.6bn cash deal for its European concessions business lapse, claiming that the offer from JSE-listed Greenbay property fund underestimated its assets. In addition, the offer lifted Group Five’s shares in an approximate high of as much as 42% from recent lows of R8 a share.