‘Time to go, Mr Boon’ – Andrew Price

 The campaign to disrupt the board of PaperlinX ratchets up a notch as Andrew Price sharpens his criticism of chairman Harry Boon.
“It is a huge understatement to say that there has been a serious lack of action from this board to restructure the business [PaperlinX] since Harry Boon joined in 2008. The best thing he can do for the shareholders is tender his resignation,’’ said Price.

Pursuing his ambition for a seat on the board as executive chairman, Price met with major shareholders to canvas their support ahead of a special EGM. Two of the largest shareholders, Orbis Investment Management and Schroder Investment Management appear to have given him the nod to deliver Chairman Boon the boot.

According to reports in the AFR the investment funds reckon the move to get Price onto the board is “exactly what the company needs.”
This means the high profile investor has the conditional support of owners of almost 30% of PaperlinX shares for his bid to topple the chairman. This brings to over 35% the number of shares the insurgent campaign is able to count on.
However the funds are waiting to meet with Harry Boon before making a final decision. PaperlinX has yet to schedule an Annual General Meeting, which it is legally required to before the end of March, to vote on the plan. Harry Boon continues to be unavailable for comment. Toby Marchant, UK-based CEO, has described the timing of the requistion for an EGM as unfortunate, ahead of the company’s up coming February 22 market update. The company’s shares languish at 8.4 cents from a high of $5.37 in 2003.

Price remains confident of the success of his campaign to unseat Boon.
“I never move unless I’m confident of the outcome. I intend to turn this company around, to bring it back to the basics of business. I’m absolutely bemused at the lack of response from the board over the past few years,” said Price.
He accused the board of wasting management time in the drawn-out negotiations with a yet-unnamed US-based private equity fund that values the company at $117million.
“If they sell the company to the private equity fund at that price it is tantamount to the board admitting its failure. Buying and selling paper is a simple business but this board has over complicated it. I’m not a brain surgeon but I do know how to make money for shareholders,” said Price.