Peter Watt exits BCX

Johannesburg, 23 May 2007

In a move that has surprised analysts and industry commentators, Business Connexion (BCX) CEO Peter Watt today confirmed he will step down at the end of the month, ITWeb can exclusively report.

Deputy CEO Benjamin Mophatlane will take the top spot. The change in leadership follows Watt's long-standing notice to investors that he is ready to retire.

However, analysts following the company have responded negatively, saying the move is "interesting", especially considering Mophatlane was never seen as being in line for the top job.

"Watt has been very open about his intention to leave BCX; nevertheless, he always said he would wait for the proposed acquisition by Telkom to be decided. Doing it now raises some questions as to what has changed," says one analyst, who asked not to be named.

However, Watt says it is just a question of age and best timing for the company.

"I'm getting quite old; I'll be 66 in September and I'm fortunate that I am able to retire. As for the proposed Telkom acquisition, it has been dragging on for over a year. At the moment, we hope a decision will be made by the end of June, but it could go on into July or August, maybe even longer," he explains.

Additionally, Watt says the company's financial year starts on 1 June and it makes sense for the person coming in to "start off right at the beginning of the period, with his own budget and intentions".

He notes: "I would like to make it clear though that my decision to step down has nothing to do with the Telkom deal. An article in Business Report suggested there had been tension within the board regarding the Telkom deal. There is absolutely no disagreement within the board on the Telkom deal - it is a shareholder issue and it is my job to do the best I can for shareholders as I always have and always will do."

Unexpected decision

Meanwhile, analysts are surprised Mophatlane is taking Watt's spot.

Another analyst, who asked to remain anonymous, explains: "Mophatlane has never really been considered to be a real candidate to succeed Watt. He's only 33-odd, which is quite young to be taking the helm of a company such as BCX. His former experience also pales in comparison to the size of the business he will now be leading.

"Of course, if the Telkom bid is successful, then it won't really matter; the top spot will be more of a nominal role," he adds.

Acknowledging the opinion of analysts, Watt says he has been grooming Mophatlane for years and he is considered by the workforce to be the best person for the job.

"[Mophatlane] and I have worked very closely and very well over the years. I know some analysts will be surprised by his appointment, but the workforce won't be. We have [sought the opinion] of quite a few people within the company and I have yet to come across one person who disagrees with the idea," he explains.

Mophatlane will take the top spot next month, with Watt by his side until 1 July to ease the handover. Watt says after this, he will "hang around" until the end of December.

Mophatlane could not be reached for comment.