2nd Jul 2018 09:41
LONDON (Alliance News) - Premier Foods PLC on Monday backed Chief Executive Officer Gavin Darby after shareholder Oasis Management Co Ltd said it intends to vote against his re-election at the company's annual general meeting.
Oasis Management, which owns 9.3% stake in the company, encouraged other shareholders to voting against Darby.
In June, Oasis said Darby drove Premier Foods into a "zombie-like-state" and he had "no credible strategy to return Premier Foods to growth".
"Gavin Darby has overseen five years of failure which has led to considerable destruction of shareholder value. The equity market has long lost faith in his leadership, and in our view his self-interest and self-preservation, which we will no doubt see much of over the coming weeks, have driven a culture which does not respect the interests of shareholders," Oasis added.
Premier Foods said it "rejects" the statements made by Oasis to date and it firmly believes that Darby is "best placed to run the business".
The company said "there is no certainty" that a manager with the same or superior skills "could be recruited, at acceptable cost or within a reasonable period" if Darby is pushed out.
Chairman Keith Hamill said: "The board believes that Gavin Darby is running the company well. In contrast, the Oasis proposal offers no constructive solution to the challenges being addressed and involves the risk of creating instability at a time when continuity is important in completing the work being done."
The company urged shareholders to vote in favour of the CEO's re-election at its annual general meeting on July 18.
Premier Foods shares were trading 0.2% lower at 37.82 pence each on Monday morning.
Related Shares:
Premier Foods