11/02/2011 - 08:53

Aspen board showing cracks

11/02/2011 - 08:53

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Residential developer Aspen Group has backed off on its claim that its board of directors were unanimous that it was not in the company's best interests for dumped co-founder Angelo Del Borello to return.

Residential developer Aspen Group has backed off on its claim that its board of directors were unanimous that it was not in the company's best interests for dumped co-founder Angelo Del Borello to return.

Aspen announced to the ASX yesterday that long-serving company director Seng Fai Chan had requested Aspen clarify the situation because he did not share the view of the remaining board members.

On January 31, Aspen stated its board was unanimous in the view that Mr Del Borello not be reinstated, after major shareholder Entrust requested a meeting of shareholders to discuss a boardroom spill.

A date for the meeting has not yet been announced, but it is understood that it will occur within the next two months.

Entrust is seeking to remove managing director Gavin Hawkins, chairman Reg Gillard and non-executive director Terry Budge, and replace them with Mr Del Borello, Entrust Funds Management managing director David Franklyn and funds management industry veteran Richard Colless.

Entrust said it launched the action over concerns that Aspen was trading at a 33 per cent discount to net asset backing, which it said was the deepest discount of any S&P/ASX 300 real estate investment trust that only invests in Australia.

Mr Del Borello and Entrust collectively hold 7.8 per cent of Aspen Group.

 

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