STOUSH ERUPTS OVER DART BOARD

Written on the 19 November 2013

STOUSH ERUPTS OVER DART BOARD

A NASTY stoush has erupted between two of Brisbane’s premier listed companies, New Hope Corporation and Dart Energy (ASX: NHC, DTE), over positions on the Dart board.

New Hope, which owns 16.2 per cent of DTE, has put forward Rob Neale (pictured), Stephen Lonie, Peter Forbes and Cam Rathie for the board, prompting DTE chairman Nick Davies to send a letter to shareholders imploring them not to vote for the NHC proposal.

NHC chairman Robert Millner hit back today, with the company posting Davies’ letter to Dart shareholders and its own response to the ASX.

“New Hope has lost confidence in the current board of Dart Energy. All shareholders are, therefore, being given the opportunity to have their views heard at the company’s AGM,” says Millner.

Millner blames the current board for Dart’s poor share price performance over the past three years, which has seen the company’s market capitalisation drop from $510 million to $139 million.

“Without change at the board level of Dart Energy, New Hope fears that the history of poor financial performance will continue,” he says.

“The Dart Energy board needs reinvigoration. The injection of drive and determination displayed by each of the new board candidates is what is needed.”

Davies says NHC wants to “seize control” of the Dart board and is seeking diversity at the “expense of Dart shareholders”.

“The Board of Dart Energy continues to believe that this approach by New Hope is wrong for Dart shareholders. It brings in the wrong skill set for Dart at the wrong time with the wrong motives, and will deliver the wrong outcome for shareholders,” he says.

Davies goes on to list the achievements of the Dart board and says NHC has not presented any alternate plans, but Millner says “the function of setting strategy is the responsibility of the Dart Energy board. It is not a function for New Hope”.

“The need for change in Dart Energy arises because the current board has observably failed to deliver on strategy and has sought to avoid taking responsibility for the company’s performance as a consequence,” says Millner.

The scene is set for an intruiging DTE annual general meeting on November 26, when the shareholders will get their vote.

DTE is trading down 4.17 per cent at $0.115 today, while NHC is down 1.11 per cent at $3.55.


Latest News

AUSTRALIA READY TO DISRUPT GLOBAL CARBON FIBRE MANUFACTURING

AUSTRALIA for the first time has the capacity to produce carbon fibre from scratch and at scale, following the launch...

HONG KONG FUND INVESTS $212.8 MILLION IN G8 EDUCATION

G8 EDUCATION (ASX: GEM) has secured $212.8 million from Hong Kong-based CFCG Investment Partners to pay down debt and...

MERGER DELIVERS THE FINANCIAL GOODS FOR TERRY WHITE

TERRY White Group has posted a solid half-year net profit of $1.3 million amid a period of major transformation fo...

BLUE SKY APPOINTS TWO NEW INDEPENDENT DIRECTORS

BLUE Sky Alternative Investments (ASX: BLA) has appointed two new independent, non-executive directors to its board: ...

Related News

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

TEST DRIVE A POST GRAD AT BOND

THERE'S only one way to really move your career into the fast lane, says Bond University, and 'test driving...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter