Here's the elephant in the room about these guys.They're looking...

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R21

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11/10/23

11:25

Post #: 70284095
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Originally posted by RVR: ↑

AUST Business today (excerpt):
BID TO SCUPPER WHITEHAVEN MINE PLAN

Glen Norris
Activist shareholders of Whitehaven Coal are seeking to topple board members as part of a campaign to scupper a planned acquisition of mines and instead return funds to investors.
The activists, in an anonymous website called Fair Shareholder Returns, have called on shareholders to vote against the election of directors Nicole Brooke, Wallis Graham and Raymond Zage at the company’s annual general meeting on October 26.
They also are urging a no vote against the remuneration plan for executives including managing director Paul Flynn, which does not measure total shareholder returns (TSR) in key performance indicators, saying it will “encourage acquisitions over optimising shareholder returns”.
Whitehaven Coal has revealed it is one of the front runners in the contest to buy BHP’s Daunia and Blackwater coal mines in Queensland for up to $9bn.
Some shareholders are opposed to the plan, preferring excess capital to be returned to shareholders. Bell Rock Capital last month said the deal could be “destructive for shareholders”.
Whitehaven is understood to have told investors it would only embark on an acquisition if it was earnings accretive.
“Given the enormous cash balance held by Whitehaven, it is easy to make a deal look earnings accretive but this approach can still be value destructive for shareholders, which is our strong concern,” London-based Bell Rock, which owns about 5 per cent of Whitehaven, said this month.
Whitehaven shares have slumped more than 35 per cent over the past year.
The activist website, which does not name who is behind it, said the company had underperformed its peers Yancoal and New Hope and may squander cash windfalls.
“Paul Flynn receives three times the pay of his peers after receiving an 85 per cent remuneration increase in 2022 and a further 26 per cent this year,” the website said.……

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Here's the elephant in the room about these guys.
They're looking after their stakeholders, not all stakeholders. They're no white knight...

If you're an overseas investor which outcome do you prefer:
a) same size business, return excess capital through on-market buybacks
b) increase in size, increase returns through fully franked dividends

To be so vocal without knowing price and terms is the ultimate tell...

Last edited by R21: 11/10/23

WHC Price at posting: $6.75 Sentiment: Hold Disclosure: Not Held
13 Upvote

2 Great analysis

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