Nyambirai in Pelhams U-turn

allegedly threatened to resign in protest.
He planned to push for an EGM after snapping up a 38 percent majority stake in Pelhams, which he has raised to 58,5 percent.
Mr Nyambirai allegedly wanted to oust and replace sitting chairman and former majority shareholder Mr Oliver Chidawu and the chairman’s unnamed close confidante.
Executive board members — Mr Oswald Masoha, Mr Isiaah Mukudu and Ms Josephine Matsika — had also allegedly threatened to step down in support of the chairman.
The resignations would have negatively impacted on the listed furniture group, as the three hold executive posts.
Mr Masoha is the group chief executive, Mr Mukudu the chief operating officer and Ms Matsika the chief financial officer.
Mr Nyambirai had a change of heart following the rebellion and has agreed with the board to find an amicable solution.
Sources yesterday told Herald Business that Mr Nyambirai and the Pelhams directors were close to a solution.
“Mr Nyambirai and the (Pelhams) board have agreed on an amicable solution, satisfying to all parties, and they are close to reaching an agreement on the way forward,” said one of the sources.
Mr Nyambirai had wanted to expand the Pelhams board from nine to 11 members and allegedly wanted to remove two sitting members and install four of his own for proxies as directors.
But it is common practice in the corporate world for new controlling shareholders to influence board compositions in line with their choice and vision for a company.
TN founder and chief executive Mr Nyambirai wanted to bring changes that would also result in at least one board representative for every 10 percent shareholding in the group.
Yesterday, Mr Nyambirai was reluctant to discuss the matter.
But he told a local business weekly two weeks ago: “We requested board representation and asked for five or six seats. We have made the sentiment known to the current board.
“We do not want it to be hostile. But I am confident that it will not get to that.”
The shrewd businessman gained sway of the Pelhams board after acquiring 38,5 percent of the furniture dealer from Mr Jayesh Shah who held the shares as security for a loan to Mr Chidawu, formerly the single largest shareholder.
Mr Chidawu received a US$3 million loan from                  Mr Shah, but after he failed to repay in terms of                       the agreement, the shares were sold to Mr Nyambi-rai.
The ordinary shares in question totalled 358 207 502 and were sold to the TN Holdings founder at a special bargain price of US0,71c each.