🚀 ProPicks AI Hits +34.9% Return!Read Now

Peter Hambro ousted from his gold mining company Petropavlovsk

Published 22/06/2017, 17:58
© Reuters.  Peter Hambro ousted from his gold mining company Petropavlovsk
BHP
-
AAL
-
BHPB
-
POG
-

By Barbara Lewis

LONDON (Reuters) - Shareholders voted for four new board members at Russian-focused gold miner Petropavlovsk (L:POG) on Thursday, ousting Peter Hambro who has run the company since he founded it in 1994.

Rebel shareholders, holding around 40 percent of the company, backed nominees to replace four out of six of the board at Petropavlovsk, including Hambro, Hambro said.

The new appointments include Bruce Buck, who is chairman of Chelsea Football Club, and Vladislav Egorov, who works for Renova, Russian billionaire Viktor Vekselberg's conglomerate.

Speaking after the annual general meeting at a city lawyers' offices on the banks of the Thames in London, Peter Hambro said he could not disguise his disappointment.

But he hoped "with all my heart" the new board would build on progress he said the company had made.

"I will enjoy my new role as an ordinary shareholder and in it I shall advocate for a continuation of the same transparency, diligence and good corporate governance that I believe we achieved at Petropavlovsk," he said.

In an initial report, shareholder adviser ISS recommended against supporting any of the proposals from rebel shareholders, but last week, it issued revised advice, saying it had received additional information.

However, ISS only recommended backing two of the dissidents' nominees -- namely, Garrett Soden, who has worked for the Lundin group of companies for a decade, and Ian Ashby, nominated to be chairman.

Ashby headed BHP's (AX:BHP), (L:BLT) iron ore division from 2006 to 2012 and was named in May as a non-executive director at Anglo American (L:AAL).

Any shareholder holding more than 5 percent can call an extraordinary general meeting and require the circulation of a resolution.

Renova is Petropavlovk's biggest shareholder with 14.65 percent, according to Reuters data.

Other major shareholders DE Shaw, M&G and Sothic, which together hold 25 percent, said in a statement last week they had no intention of taking control of the company and were not acting with Renova, which has declined to comment.

Hambro, who holds 4.6 percent, had accused the rebel shareholders of pursuing a "takeover by stealth" but the Takeover Panel found there was no legal requirement for a formal takeover bid.

He agreed earlier this year to stand down as chairman and instead be an executive director.

In the years before a restructuring in 2015, Petropavlovsk's equity value collapsed.

The share price has recovered from lows around 2 pence at the end of 2014 to just over 7 pence, boosted by a return to profit in 2016. So far this year, it has risen 4.32 percent.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.