Corporate strategy: Gamma Civic adopts new Investment Holding model
Mauritius’ Gamma Civic Ltd will operate under a new Investment Holding Company model effective from 1st July 2015, which is part of a Strategy and Organisation Design Review of Gamma where the priority remains sustainable growth with focus on maximising return on investment while optimizing costs.(Image: Company)
This model is part of the continuing implementation of a roadmap to transform Gamma into a concerted investment holding company, which is a process launched in 2010 and developed further by Deloitte MCS UK in 2013 as part of the Strategy and Organisation Design Review of Gamma.
The entrepreneurs who founded Gamma chose to clearly define the role of the owners, the administrators and members of the board, according to global best practices of good governance as also to assure a flexible transition for the administrators’ next generation.
The company will lean on professional administrators who will execute the strategic plan of the group. From now on, family members Ah Teck and Cyril How Kin Sang, who are presently executive directors, will act as non-executive directors within the framework of the board meeting of this company that has been listed since 1994. So, the founding entrepreneurs will have more time to grant to strategic reflections for the development of the group.
Gamma Civic Ltd (ex-Randabel and Sons Ltd) was originally incorporated on 4th of July 1961 and it was listed on the Stock Exchange of Mauritius Limited in 1994. The enterprise that was initially engaged in the manufacture and trade of building materials grew to become vertically integrated, with a spectrum of business activities encompassing building materials, building and civil works, contracting, cement trade, property development and lottery.
Nearly 30 years ago, Gamma Civic Ltd started off as a company which was controlled and managed by its founders. Over the years, and in particular as from 2010, the Board started to reorganise all the companies belonging to Gamma Civic Ltd into a corporate structure with Gamma Civic Ltd as the ultimate holding company of the Gamma Group. The companies in the Group are managed by professional managers who are answerable to their respective Boards.
“Family companies worldwide reinvent for sustainability. Since 2010, we began a reorganization of all our companies to establish a new structure so the firm gradually becomes an investment company managed by professional administrators. Over the last five years, we have been accompanied in this thought process by the very famous professor Randel Carlock, who advises family-run businesses worldwide, by management experts at INSEAD, by Dr Chris Pierce, who revised the code of good governance, and by professor Mervyn King, who was the kingpin of the new code of good governance in Mauritius and South Africa. With this new structure, we pass on the baton to the new generation employees whom we trust to efficiently manage the daily operations of this company whose origins go back to 1961,” highlighted Carl Ah Teck, Chairman of the Board of Gamma Civic.
The new structure will include Chief Investment Officer Amal Mahadawo who will support the Investment Committee. Amal, who has proven his abilities and honed his skills in reputed American and European companies, will be supported by two other professional administrators, namely John McAree, Group Chief Finance Officer, and Clément Leu San, Group Financial Controller.
Paul Halpin, non-executive independent director of the board of Gamma Civic and former partner of PwC in Europe and in Africa, declared: “Gamma Civic has clearly demonstrated its dedication to robust corporate governance by introducing an internal charter and by appointing independent non-executive directors to the board. It testifies yet again to the will of the Ah Teck family, which, since 2010, has done everything to ensure the sustainability of the company for generations of current and future shareholders.”
Carl, Tommy and Patrice Ah Teck as well as Marie Claire Chong Ah Yan and Cyril How Kin Sang, who will now be non-executive directors, will guide the new team in an advisory capacity until December 31st to assure a harmonious transition and ensure that the spirit of entrepreneurship of the founders is maintained. The latter remain members of the investment committee, chaired by Carl Ah Teck.
The committee will be responsible for supporting the new phase of development whose aim is to find new opportunities in the various markets in which the company exercises its activities or those that it intends to explore in the future.
The members of this investment committee are:
Carl Ah Teck (President)
Tommy Ah Teck
Cyril How Kin Sang
Patrice Ah Teck
Marie Claire Chong Ah Yan
Jean-Claude Lam Hung
“The strategic priority of Gamma remains sustainable growth, with a focus on maximising return on investment while optimizing costs. One of the priorities of this committee will be regional expansion, which remains a pillar of development that Gamma wishes to explore,” concluded Carl Ah Teck.