Abano Healthcare Group [NZX: ABA] is mulling the extraordinary general meeting request from rebel shareholders Peter Hutson and James Reeves who want to dump Trevor Janes as chairman and refresh the board.
In acknowledging the requisitioning of a special meeting by Hutson and Reeves, who together hold 19 percent of the company, the healthcare investor's board reiterated its support for Janes.
"The Abano board, which remains unanimous in its support for Mr Janes as chairman and in its support of the company's strategic direction, will now consider the requisition and update shareholders in due course," the company said in a statement.
The meeting would be preliminary to agree to an actual vote at another EGM on May 30 on whether to remove Janes as a director, giving Hutson's investment vehicle Healthcare Industry time to put its case in a statement to shareholders.
An EGM can be called at the request of 5 percent of a company's shareholders, which the pair's shareholdings easily exceed. They have nominated May 27 for the initial meeting.
The two investors say Abano's dental clinics are underperforming, providing an investment return of 3-4 percent a year since 2010 - less than banks are offering on deposit - and with more risk.
Abano shares were $6.50 before trading opened this morning, and have gained 2 percent this year.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- READER POLL RESULT: Will a land tax on foreign-based house buyers cool the housing market?
- Facebook exec on info requests from NZ govt agencies: the numbers, and the criteria for forking over your data
- Concession on fees sees ANZ first onboard for Apple Pay
- EPL options narrow: Sky, beIN or nothing
- Speculation over Hilary Barry's next move
Most listened to
- Listen to the week’s top business news on NBR Radio’s week in review
- Matthew Hooton on Winston Peters’ plan to become prime minister
- Tim Hunter asks: Is the government planning to hand control of water to iwi?
- Rob Hosking breaks down the political and economic week that was: Has everyone gone tax mad?
- Rodney Hide on the technological development and economic advance in transport