Another quiet month for companies in term of activism, however those who are targeted seem to be getting hit from multiple angles.
Excelsior Capital received a request to wind up and liquidate the Company. This request came from a group of six concerned shareholders including Bavaria Industries Group, a German private equity firm specialising in turnarounds of distressed companies. One of the shareholders on the requisitioning notice, Warwick Sauer, also nominated himself to the board in a separate notice. Both have been put forward as requisitions at the Company’s Annual General Meeting on 13 October and the Directors of Excelsior have unanimously recommended shareholders vote against.
New to the activist circle, Glennon Small Companies announced that it received a notice to appoint Tricia Klinger as a director of the company. No further information was given about the shareholder(s) that called the meeting or a reason as to why it has been requisitioned. A meeting date has yet to be set. Michael Glennon, Chairman of Glennon Small Companies Limited, is however no stranger to activism having previously been the Chairman of Excelsior Capital and was also an activist nominee to the Board of Benjamin Hornigold when that company was subject to several activist campaigns during 2019.
Also keeping busy was MEC Resources which announced that one of the two requisitions that have been put forward in recent months by shareholders has been withdrawn. The 249D put forward by AJ Superfund and Griffiths Super Fund in the middle of August was withdrawn before the October scheduled meeting, however the 249F notice from a different group of concerned shareholders is still open.
The 249D notice put forward the removal of Mr. Bald, Mr. Harrison, and Mr. Hamilton and had nominated Mr. Corps, Mr. Jones, and Mr. Coloretti. On 2 September the company announced that Harrison had resigned as director would instead be taking charge of the company’s planned sale of its stake in Advent Energy. A week later the 249D meeting was withdrawn. At the end of the month MEC announced further changes to the board with both Andrew Bald and Anthony Hamilton resigning and Robert Marusco and Andrew Jones being appointed. Jones was a nominee of both the 249D and 249F notices. To date, even with the board changes, there has been no update on the 249F notice.
The NSX board remains unchanged after the meeting called by OSSA Pty and Gowing Bros failed to gather shareholder support. The meeting came only a week after the one at the end of August which had been requisitioned by Exchange Technology Investments who failed in its attempted to add Craig Mason to the board.
Thorn Group received a request at to remove three of its four directors and to appoint to nominees to the board. The request was subsequently deemed invalid.
Wilson Asset Management submitted a notice to change the board of Contango Asset Management. This was presented in the days leading up to a meeting called by Contango to adopt a new strategy for its investment portfolio, which was subsequently approved by shareholders. While the Company was considering the notice to change the board, Wilson changed tack and launched a takeover bid on 28 September for Contango Income Generator, offering 1 WAM share for every 3 CIE shares.
Wilson is keeping busy on the activist front having had quick success in pushing for a reduction in the size of the Myer board and director compensation.
|Wilson Asset Mangement||Contango Income Generator||249D Notice||Remove two directors and appoint two nominees to the board and also change Wilson Asset Mangement to the Company's new investment manager.||16/09/2020|
|Concerned shareholders||Glennon Small Companies||249D Notice||Appoint a new director to the board||15/09/2025|
|Concerned shareholders||Peak Resources||249D Notice||Remove one of the non-executive directors||14/09/2020|
|Concerned shareholders||NSX||249D Notice||Appoint Rod Roberts as director.||09/09/2020|
|BPH, David Breeze, and other concerned shareholders||MEC Resources||249F Notice||Remove entire board and replace with four nominees.||07/09/2020|
|Concerned shareholders||Thorn Group||249D Notice||Remove three directors and appoint with own nominees||02/09/2020|
|Concerned shareholders||Excelsior Capital||249D Notice||Call a meeting to wind up and liquidate the company. The Directors have unanimously recommended shareholders vote against the resolution at the annual meeting on 15 October.||26/08/2020|
|Concerned Shareholders||Peak Resources||Settled before meeting/ Requisition withdrawn||One of the non-executive directors steps down||1 week|
|Concerned Shareholders||Thorn Group||Invalid Notice||Request deemed invalid.||2 weeks|
|AJ Superfund and Griffiths Super Fund||MEC Resources||Settled before meeting/ Requisition withdrawn||Shareholders withdraw their notice to remove three directors. One of their targeted directors steps down from the board.||4 weeks|
|OSSA Pty and Gowing Bros||NSX||Company Wins at Meeting||Activists failed to gain backing of shareholders to win a board seat||8 weeks|
Three Months Activity
|New Activist Campaigns||4||2||7|
|Activists Win at Meeting||0||0||0|
|Company Wins at Meeting||1||3||1|
|Settled before meeting / Requisition withdrawn||1||0||2|