JULY SUMMARY
After a quiet first half of the year, July has only picked up slightly for activists targeting Australian companies.
Shareholder Matthew Boysen is looking to change up the entire board of Adavale Resources after the company announced a rights issue. Boysen said the rights issue was not attractive, other than for shareholders to take part in order to avoid dilution. He asked the Takeovers Panel to look into it and, within a few days, the rights issue had been cancelled by the company.
At the end of June, two directors in Orminex called for the removal of Daryl Henthron as a director. Henthorn initially had accused them of being motivated by “a desire to take control of Orminex” but within a month Henthorn resigned and the meeting was withdrawn.
The NSX has been targeted twice in recent weeks. OSSA Pty and Gowing Bros requisitioned a meeting to appoint Rod Roberts as a director. This comes only a few weeks after the NSX received a request from Exchange Technology Investments to appoint Craig Mason. The majority of the board have opposed both nominations.
Once again, Accelerate Resources is being kept in the spotlight by GTT Global Opportunities. At the most recent meeting, shareholders voted against GTT’s attempt to remove Grant Mooney and install David Saunders. However, this meeting wasn’t the last of GTT’s attempts to change the board. At the end of June they served a new notice, this time to remove Terence Topping, which is still waiting on a date for the meeting. This was promptly followed by another notice, the eighth, during July to remove Richard Hill and Yaxi Zhan. Accelerate looks like it will be kept busy for some time to come.
New Activism
| Activist/s | Target | Approach | Requisition | Lodged |
|---|---|---|---|---|
| Matthew Boysen | Adavale Resources | 203D Notice | Remove the board of directors. | 24/07/2020 |
| GTT Global Opportunities | Accelerate Resources | 249D Notice | Removal of Richard Hill and Yaxi Zhan from the board. Meeting to be held on 24 August. | 09/07/2020 |
| OSSA Pty and Gowing Bros | NSX | 249D Notice | Appoint Rod Roberts as director. | 07/07/2020 |
| Exchange Technology Investments | NSX | 249D Notice | Appoint Craig Mason as a director. | 26/06/2020 |
Resolved Campaigns
| Activist/s | Target | Meeting | Outcome | Resolution Period |
|---|---|---|---|---|
| Merrysoul Pty Ltd (Michael Foulds) and Rolen Pty Ltd (Ross Graham) – two directors of Orminex | Orminex | Settled before meeting/ Requisition withdrawn | Targeted director, Daryl Henthorn, steps down. Meeting is withdrawn. | 4 weeks |
| GTT Global Opportunities | Accelerate Resources | Company Wins at Meeting | Shareholders voted against GTT in its attempt to oust Grant Mooney and install David Saunders. | 7 weeks |
Three Months Activity
| Activist/s Action | May | Jun | Jul |
|---|---|---|---|
| New Activist Campaigns | 3 | 3 | 4 |
| Activists Win at Meeting | 0 | 1 | 0 |
| Company Wins at Meeting | 2 | 1 | 1 |
| Settled before meeting / Requisition withdrawn | 0 | 0 | 1 |