AMP Shareholders get Active
Merlon Capital Partners, a shareholder in AMP, sent a letter to its board on 29 October opposing the terms of a proposed sale of its Australian and New Zealand wealth protection and mature businesses. In it they detail a number of undertakings they are seeking from the board and, if not provided within the week, the shareholder has indicated it willlobby other investors to convene an Extraordinary General Meeting to spill the board.
Risco Gets a Second Seat on Tap Oil’s board
Tap Oil has appointed another non-executive director, David King, as part of an agreement with activist Risco Energy Investments. The August 9 agreement stipulated that Risco would receive a seat on the board when they reached a 30% stake in Tap Oil. Currently Risco owns 44.1%.
Chris Newton was appointed non-executive director and Chairman in August and has recently entered into a consultancy agreement with Tap Oil to provide a range of management services including investor relations, shareholder communication, strategy development and cost reduction advice to the company.
David King is the second non-executive director, advanced by Risco, appointed to the board.
King is founder and director of Eastern Star Gas, Gas2Grid and Sapex, and served as CEO Beach Petroleum and Claremont Petroleum.
Propertylink keeping investors on their toes
Propertylink and its shareholders have had a busy month.
Propertylink announced that it is no longer planning on pursuing its acquisition of Centuria Industrial. With this, ESR Real Estate increased its offer to takeover Propertylink from $693 million to $723 million. ESR’s bid was conditional on Propertylink not proceeding with the hostile takeover of Centuria Industrial. ESR is currently doing its due diligence and Propertylink has agreed not to engage in talks with other interested parties. ESR own 9% of Centuria Capital and nearly 20% of Propertylink.
The board of Propertylink is planning on recommending investors accept the ESR offer.
In a related matter, the PropertyLink announcement, in September, of the plan to acquire Centuria Industrial prompted Centuria Capital to requisition a meeting of Propertylink shareholders to spill the PropertyLink Board. That meeting is still scheduled to take place on November 15th.
Metallica activists to call their own Meeting
A group of concerned shareholders, with 5.2% of the company, has requisitioned a meeting under s249F for the purpose of removing all board members and appointing three of their own nominees – Theo Psaros, Scott Waddell and Andrew Gillies. Metallica has said it will update the market in due course but noted that it is unable to convene a meeting before December 24.
It is unclear why the shareholders want to remove the entire board which announced in mid September its intention to enter into a Canadian Plan of Arrangement with TSX listed Melior Resources.
Shareholders Third Attempt at Winding Up Aims Property Securities Fund
Shareholders Samuel Terry Asset Management and Sandon Capital have put forward a proposal to wind up Aims Property Securities Fund and to distribute cash to investors.
The investors said the company had continually underperformed for nine years and that investors should vote in favor of the proposal in order to maximize their returns.
This is not the first time Aims shareholders have tried to wind up the company. Shareholders have previously attempted to do so twice before and this is the second time Samuel Terry has raised the issue over Aims’ poor corporate governance.
Looking for a Board Change at Pacific Diaries
A general meeting has been requisitioned by shareholder of Pacific Diaries looking to have three directors replaced. It is currently assessing the validity of the notice to replace Chairman Paul Duckett, Ray Taylor, and Chris Egan with Grant Darling, Ping Huang, Ian Macallan, and Alan Mitchell.
Monash Rejects Sandon’s Offer
Monash Absolute Investment has rejected the proposal put forward by Sandon Capital for a merger, saying it is a costly bid to liquidate the company. Sandon said it was disappointed by the decision and is urging other shareholders who are also frustrated with the company to contact its chairman.
Monash said earlier this month that it is committed to a number of initiatives to narrow the gap between net tangible assets and the share price by announcing a share buyback program and took issue with Sandon’s investment approach, which it views as “different.” According to the company, Sandon overestimated the size of potential cost savings.
Murray River Organics founders withdraw Meeting requisition
The founders of natural foods company Murray River Organics have withdrawn their requisition for a special meeting, which was aimed at removing two members of the company’s board.
On 19 October Jamie Nemtsas and Erling Sorensen sent a letter to shareholders, advancing themselves for election to the board to replace Keith Mentiplay and Michael Porter. The founders also proposed terminating the capital increase already underway.
In its response, Murray River said that the founders had been at the centre of “underlying problems and poor management of the company” before leaving in 2017 amid falling shareholder value.
Premier Investments and Myer
Premier Investments has requested that Myer Holdings provide it with a full list of its shareholders so that it could “consider writing” to them ahead of the company’s November annual meeting.
Aurora Funds Management on the back foot
Aurora Funds Management withdraws its 249D notice calling for the removal of Yowie Group chairman Louis Carroll from the board of directors.
The majority of Yowie Group’s board members recommended shareholders vote against the re-election of investor nominee William Johnson as a response to Aurora’s campaign to remove chairman Louis Carroll. William Johnson resigned as a director.
Separately, Wilson Asset Management requisitioned a meeting at HHY Fund to consider a resolution urging Aurora Funds Management to wind up HHY. This is the second time in 2 years that Wilson has attempted to wind up the fund through an EGM.
KIN Mining’s Musical Chairs
For the second time this year KIN Mining’s shareholders are witnessing a battle for control of the board between a former director, David Sproule and a group of investors seeking replacement of the entire board with himself, John Kamara and Christopher Johnston.
Earlier in the year a group of shareholders requisitioned a general meeting to consider the removal of David Sproule as director. The requisition was withdrawn following David Sproule’s resignation.