Case Study

Wiphold (C): Managing the 2002 crisis (Abridged)

12 pages
July 2005
Reference: IMD-1-0232

This is an abridged version of the C-case of the WIPHOLD series which describes a tumultuous time for the company from 1998 to 2002 as its fortunes rose and fell in line with those of South Africa’s black chips. Responding to market signals, and in an attempt to eliminate the discount at which its shares traded on the stock market and to create value for shareholders, WIPHOLD decided to become an operational financial services company in 1999. It then embarked on a three-year plan to make this a reality. This decision would place it in direct competition with its institutional investors who were big financial services companies. In addition, lacking capacity, WIPHOLD poached people from some of these same institutions. As 2002 drew to a close, WIPHOLD reviewed its challenges. How could it deal with increasingly fractious institutional shareholders who now owned the majority of WIPHOLD’s shares–the women’s shareholding having been greatly diluted after the private placement. Although the institutions disagreed with its strategy of moving into operations, the company believed it was the right way to go. But the flagship of that strategy, its financial services company WIPcapital, had turned in a disappointing early performance. And to crown it all, WIPHOLD’s shares continued to trade at a significant discount to its net asset value. What could they do?

Private Equity, Economic Empowerment, Black Economic Empowerment, Post-apartheid, Social Entrepreneurship, Development Finance, Financial Services
South Africa
Field Research
© 2005
Available Languages
Related material
Teaching note, Video
Case clearing houses
IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]


Research Information & Knowledge Hub for additional information on IMD publications

2005 EFMD AWARD WINNER (Managerial Issues in Transitory Economies)
Discover our latest research
IMD's faculty and research teams publish articles, case studies, books and reports on a wide range of topics