Everest review considers business wind down
A strategic review of Everest Financial Group’s (EFG) business, due out by the end of this month, is considering merger and sale alternatives and business wind down scenarios with the aim of maximising the return to all shareholders.
EFG chairman Greg Martin said the Board had decided to take immediate steps to further reduce operating costs by suspending all current growth and marketing initiatives until completion of the review.
“Following the AGM, we have had various discussions with our shareholders about the best way forward for the business, especially in light of the recent volatility in world equity and debt markets, which now looks to be set to continue for some time,” says Martin.
Everest will focus its efforts on managing existing funds and further cost management initiatives wherever efficiency and fiduciary obligations allow.
At EFG’s annual general meeting last month, Wingate Group proposed the overthrow of Everest’s current board, due to “erosion of the shareholder value”. However, all Wingate motions, including a proposition to put in place a new board nominated by them, were rejected, with the majority of shareholders voting in favour of the current Board.
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