An interview with Rian du Plessis
Mergers and Acquisitions expert is the new Group CEO of Phumelela
THE Racing Association recently conducted a question and answer interview with RIAN DU PLESSIS, Phumelela's recently appointed Group CEO and CEO of the company's international arm Phumelela-Gold Enterprises.
Du Plessis, 47, officially took up the reins on August 1. Phumelela has also announced that David Attenborough, 45, currently Chief Operating Officer, will become CEO of the South African-based operations.
The two appointments flow from Phumelela and PGE incumbent CEO Jim Tennant stepping down. Tennant, 60, has agreed to continue with the company full-time until at least the end of 2008 to ensure a seamless transition and to focus on certain key projects.
What is your education and business background?
I have a B Acc degree. I qualified as a Chartered Accountant in 1985 and obtained a Higher Diploma in Tax Law from Wits in 1988. I spent eight years in investment banking, with FirstCorp Merchant Bank and Rand Merchant Bank - where I became joint CEO of the corporate finance division. I joined the Comparex Group in 1997 and was responsible for acquisitions and the group's international business. I was appointed CEO of Comparex Holdings Limited in 2000. At the invitation of the board, I led a team of European managers in a management buy-out of the group's European businesses. Initially as CEO, and later as chairman, I managed the turnaround of Comparex in Europe within 19 months.
And your personal background?
I was born in Welkom, started school at Grens Primary School in East London and then moved on to Grey College in Bloemfontein, where I spent my high school years. I am married with three children.
Do you have any background in racing?
No, I don't have a racing background, other than the occasional bet on the bigger races.
Are you a punter?
Very small and just for the fun of it. My biggest bet is on Phumelela shares!
What attracted you to the Phumelela post? How did you hear about it?
I was directly approached by the head of Phumelela's Remuneration Committee. I am attracted by the opportunities to accelerate Phumelela's growth internationally.
How will banking experience help in the job?
It has been more than 10 years since I have been in banking. However, my expertise in mergers and acquisitions served me well when we were internationalising Comparex (formerly known as Persetel) and I believe that the same holds true for my task at Phumelela.
You'll be based in the UK initially, to develop Phumelela-Gold's international business. What is your mandate? Can you give an indication of the sort of acquisitions you are looking to make?
My mandate is to execute on the opportunities that the board identified before I joined and to seek more of such opportunities. We are planning to stick to our knitting and will therefore make acquisitions that are complementary to or an extension of our existing businesses.
Which international regions will you target?
We are looking primarily at Europe and the East, but cannot exclude the USA just yet.
The Phumelela board says it aims to make the company a worldwide leader in the informed betting market. Could you add some detail to this vision statement - with some comment on how a SA-based operation can compete with firms in much larger racing/betting jurisdictions?
Resistance to change is often the downfall of old and large firms. We are flexible and innovative. We are leaders in exotic tote betting, co-mingling and simulcasting and believe that we have much to offer the larger racing/betting jurisdictions.
How will you manage your tasks as Phumelela Group CEO from the UK?
We have appointed David Attenborough as CEO of our South African business. David is very experienced and will be in charge of the day-to-day operations in South Africa. He will report to me and I will provide him with support if and when he so requires.
It is often asserted by people in the South African horseracing community that Phumelela only cares about its shareholders and doesn't put enough back into local racing, where its roots lie. Care to comment?
Being a public company, Phumelela's primary responsibility is naturally towards its shareholders. However, it would be naive to believe that Phumelela could be successful at the expense of the South African horseracing community. For Phumelela to be successful in the long term we need a healthy and prosperous horseracing community and we are working closely with the Racing Association to achieve that.
What are the biggest challenges facing Phumelela?
In the short term our biggest challenge, especially in South Africa, is to constrain our cost increases to levels below that at which we can increase our turnover.
How will the current economic uncertainty/downturn affect the group - and racing and betting generally?
Often in times of economic uncertainty/downturn, people tend to bet more. We are optimistic that the downturn will not be as bad for our business and/or prolonged as is currently predicted for the rest of the economy.
How do you see the state of racing in SA?
It is early days! I would prefer to give you an answer on this in a few months' time.
How do you see the local and international gambling sectors? How will local market share - racing, casinos, lottery etc - play out in the medium-term future?
I see no reason for fundamental changes in any of these sectors. However, I do believe that sports betting will in future compete heavily for the punter's rand. That is why we have invested in Soccer 6 and will explore further sports betting opportunities both locally and abroad.
Observations on the international racing television situation?
It's early days, but suffice it to say at this stage that we expect excellent growth in this part of our business going forward.
Do you have any thoughts on the oft-mooted Phumelela-Gold Circle merger?
I believe that it would be in the interests of racing in South Africa if the racing and betting industry were to be managed on a national basis. At the same time, I believe that regional racing interests should be taken into account and, where necessary, protected.
What are your hobbies and interests outside of work?
I play golf (poorly) and love to spend time observing our wildlife
Phumelela Share Prices (5 January 2009)
SShare Prices (5 Jan 2009)
date close high low volume
5Jan 1200 1200 1200 1,500
2Jan 1200 1200 1200 0
31Dec 1200 1200 1200 0
30Dec 1200 1200 1200 0
29Dec 1200 1200 1200 0
24Dec 1200 1200 1200 0
23Dec 1200 1200 1200 62,347
22Dec 1200 1200 1170 41,194
19Dec 1200 1220 1200 53,050
18Dec 1225 1225 1225 0
17Dec 1225 1225 1225 0
15Dec 1225 1225 1225 0
12Dec 1225 1225 1200 11,800
11Dec 1200 1200 1170 11,790
10Dec 1220 1220 1150 7,800
9Dec 1150 1150 1150 0
8Dec 1150 1150 1150 0
5Dec 1150 1150 1150 0
4Dec 1150 1150 1150 0
3Dec 1150 1150 1150 0
2Dec 1150 1150 1150 0
1Dec 1150 1150 1150 0
28Nov 1150 1150 1150 0
27Nov 1150 1150 1150 8,140
26Nov 1150 1150 1150 9,608
25Nov 1200 1200 1200 1,010
24Nov 1200 1200 1195 56,478
21Nov 1200 1200 1200 0
20Nov 1200 1200 1200 521
19Nov 1200 1200 1200 720
18Nov 1175 1200 1150 85,952
17Nov 1150 1150 1150 3,700
14Nov 1150 1150 1150 0
13Nov 1150 1150 1150 0
12Nov 1150 1150 1150 0
11Nov 1150 1150 1150 3,300
10Nov 1200 1200 1200 2,000
7Nov 1225 1225 1225 360
6Nov 1210 1210 1150 6,700
5Nov 1200 1200 1180 19,034
4Nov 1180 1180 1180 200
3Nov 1150 1180 1150 23,255
31Oct 1150 1180 1150 10,080
30Oct 1180 1180 1150 900
29Oct 1125 1125 1125 0
Audited Condensed Consolidated Financial
