Press release regarding the implementation date of the merging of the companies

  • 12 October 2020
  • 2832
  •  persverklaring

The offer to the Suidwes shareholders is currently in the implementation phase and Senwes will then be the sole shareholder of Suidwes. Since the approval of the transaction in August 2020, a lot of planning has been done by the Companies regarding the merger and the structuring of the different operational businesses.

“When two businesses merge, it inevitably results in tension, change and adjustment. The more common areas of tension relate to personnel and clients", said Francois Strydom, Chief Executive Officer of Senwes.

A logical consequence of a merger between companies in geographically bordering areas, is a focus on cost saving and the utilisation of synergies. Such a process brings about uncertainty for the personnel corps of both companies, since the principle of best-of-both is applied. Customers traditionally also do not like familiar processes to change, but it is part of the dynamics of mergers and typical of the restructuring of the value chain, which has actually been an ongoing process for the past two to three years. Naturally Covid-19 accelerated this process, as well as the shrinking of particularly the financing sector.

The personnel restructuring process is nearing completion and the processes which have an influence on the customer experience, will be executed and stabilised over the next few months. "For us it is business as usual, but it is inevitable that certain aspects will not run as smoothly as one would hope for", Francois added.

The understanding and patience of all parties during the process are highly appreciated - this is something which the Senwes Group has gone through a few times and we know that initial scepticism will soon change to better service delivery.

We will provide the different stakeholders in due course with more information and thank al our clients and suppliers for their continued and loyal support.

Enquiries: Francois Strydom
Group Chief Executive Officer

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