SanfordSecuritieschairman Clive Hall has resigned in light ofIWL’s move to compulsorily acquire the less than five per cent of the group’s stock it is yet to hold. Hall was replaced by IWL managing director Otto Buttula.
Buttula’s appointment was quickly followed by the resignation of two of Sanford’s non-executive directors — former National Australia Bank appointee to the board, Robert McKay and former Sanford chief executive, Stephen Goh.
The departures leave only IWL representatives on the board — IWL chief financial officer and chief operating officer Luke Littlefield, IWL executive general manager of technical infrastructure and services, Phil Moore and Buttula.
“We’re at 95 per cent and are obviously moving to complete full acquisition,” Littlefield says. “Those guys felt that now being a fully owned subsidiary of IWL, their role had been completed.”
“We anticipate Sanford will be de-listed within two weeks and within approximately 30 days, the remaining shares will be compulsorily acquired,” he says.
Littlefield says IWL is working closely with the Sanford executive team and has set up a number of working parties to focus on issues relating to integration, rebranding and cross-selling to clients.
Sanford’s independent directors had initially been strongly against the IWL takeover but capitulated after all alternative options for the group failed to materialise, at which point they recommended all shareholders accept the IWL offer.
Sanford therefore advised shareholders requiring liquidity to accept the 19 cents cash option on offer, and for those wanting to participate in the growth and potential upside of Sanford’s business to consider the IWL scrip alternative.
It also warned shareholders who failed to accepted IWL’s offer that their shares would be subject to the volatility of the stock market and could trade below the 19 cent cash alternative.
