That is good news. It has been on their agenda in the recent past but it seemed that only token interest had been shown. There are still 2 independant directors, there were 3 at one stage I believe. Regardless of the wishes of CNP the CNP directors must still vote for the best interests of all shareholders even though they represent CNP on the CER board.
Having GR in the powerful position he holds as CEO is a positive for CER as I believe he will act fairly in this regard.
I have personally been in a directorship in the past where we were prevented from taking certain actions that were in the best interests of most shareholders but not in the best interests of minority holders. It is a tricky road and directors are in a position where their actions can be subject to litigation very easily. Because of that and because there are independant CER directors I believe separation of the two will eventually happen. I will not hold my breath waiting but this news means that it is closer.
CNP can easily protect its management rights wit long term contracts. It is the management rights that would be their main worry.
CER Price at posting:
10.0¢ Sentiment: LT Buy Disclosure: Held
