Northern Star chair rejects Elliott Management call to run sale process
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The news: Northern Star Resources chair Michael Chaney has written to shareholders acknowledging recent criticism by activist shareholder Elliott Management but rejecting its call to run a sale process for the company.
The context: Chaney noted Elliott’s criticism of Northern Star’s recent share price underperformance, and said the board is “happy to engage with Elliott and seriously consider constructive suggestions which could deliver value”.
On Elliott’s recommendation that the gold miner seek a sale of the company, Chaney said “we do not consider that this is the right time to do so”.
“We are always open to serious approaches from outside parties and you will not be surprised to learn that given our share price underperformance, over the last year Northern Star has been approached by several companies about considering various corporate combinations,” Chaney said.
“Those discussions did not proceed because they were not in shareholders’ best interests.”
Chaney said the company regularly reviews the quality of its assets and considers whether to hold, expand, restructure or sell individual assets.
He confirmed that, in the last six months, Northern Star has received advice from investment banks proposing a spin-off of assets, and the company’s financial adviser reviewed those options.
“For now, we are comfortable holding the assets we do but this is a matter that will remain under regular review,” said Chaney.
He also said the board would be “pleased to consider” any board candidate that Elliott may suggest, after the investor called for a refresh of directors.
The source: ASX
