Controlling shareholder Idan Ofer is dissatisfied with ICL's performance and Stefan Borgas could pay the price.
Israel Chemicals (TASE: ICL: NYSE: ICL) CEO Stefan Borgas could be set to leave the company due to controlling shareholder Idan Ofer's dissatisfaction with the company's performance, market sources believe. Borgas's potential departure follows the recent exit of Nir Gilad CEO of ICL's parent company Israel Corporation (TASE: ILCO), who had seemed fireproof from Ofer's dissatisfaction.
ICL yesterday began a roadshow with institutional investors ahead of its planned huge bond offering. Investors essentially had two concerns: improving the company's profitability and the issue of dividends. The second topic is particularly sensitive because the company is in the process of making investments and a type of organizational restructuring stemming from its mix of products, while the fact is that ICL has yet to sign new potash agreements in China and India.
Idan Ofer as well as potential capital market investors do not like ICL's performance and improved profitability this year will have to come from reducing costs and increasing sales or prices.
ICL said, "There is no change in the role and status of Stefan Borgas. ICL is not prepared to be drawn into comments on media speculation."
Published by Globes [online], Israel business news - www.globes-online.com - on March 21, 2016
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Stefan Borgas