“Chairman Hearl should apologise to shareholders,” Mathieson said on Tuesday. “This is a board that doesn’t understand basic principles of corporate governance and that shareholders should decide who is on their board,so how on earth could they understand the company?”
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Wavish said he was pleased “common sense” has prevailed.
“I thank the ASX for their intervention on this important matter. With these distractions out of the way,my focus will be on talking to shareholders about the constructive contribution I can make to the Endeavour board,so we can all focus on getting Endeavour back on track,” he said.
Mathieson and former Woolworths boss Roger Corbett have been in fierce support of Wavish,who put his hand up for election to Endeavour’s board after expressing concern over the company’s performance.
Directors must pass a series of probity and regulatory checks to be elected to the Endeavour’s board. As the company is the country’s largest pokies operator,part of these checks require regulatory approvals from every state in which its pubs operate. This process can take between eight weeks and six months. Endeavour’s constitution says that to stand for election,a candidate must have obtained all necessary regulatory approvals.
It’s been more than two years since Endeavour floated as a standalone ASX-listed company after its demerger from Woolworths,and the company’s market capitalisation has lost more than $4 billion over the past 12 months.
When Endeavour was listed on the sharemarket in 2021,its shares closed on its first day at $6.02. The stock was trading at $5.20 on Tuesday shortly before midday.
Endeavour owns 364 pubs and clubs,1701 liquor shops,which are mostly Dan Murphy’s and BWS chains,and six wineries. It is also the largest poker machine owner in Australia.
Endeavour’s decision to implement Victoria’slooming pokies reforms 10 months early has particularly displeased its largest shareholder,with Mathieson claiming the move risked costing the company “millions and millions of dollars”.
Former Woolworths boss Corbett expressed his support for Wavish’s candidacy last week. “I have never spoken publicly about Woolworths[or Endeavour] since I retired,but I feel strongly enough to say something now,” he said.
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“When Endeavour was de-merged they[Woolworths] said it would be a very good deal for shareholders,but when you look at the Endeavour share price,it wasn’t a very good deal at all.”
But drinks retail veteran Tony Leon,who was the mastermind behind Dan Murphy’s stores,backed the leadership and strategy of Endeavour chief executive Steve Donohue last week,saying he was steering the business well after a post-COVID boom.
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