27/10/2020 - 15:33

Boral kicks off asset sales

27/10/2020 - 15:33

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Boral shareholders are supportive of the changes being adopted by new chief executive Zlatko Todorcevski.

Boral shareholders delivered a big protest today against the addition of Seven Group Holdings nominee Ryan Stokes to its board of directors.

The building products company had a busy annual meeting today, with shareholders told it was selling its 50 per cent stake in plasterboard business USG Boral for about $1.4 billion.

The Asia-focused business will be wholly-owned by German company Knauf, which already has a 50 per cent stake.

Boral also flagged a review of its underperforming US operations, including the possibility of selling assets.

Chair Kathryn Fagg was re-elected but with a 15 per cent protect vote.

She attracted strong criticism early this month when the board agreed to appoint two nominees from Seven Group Holdings, which has recently accumulated a 19.9 per cent shareholding.

Some institutional shareholders thought this gave Seven disproportionate influence and three proxy advisory firms had recommended shareholders vote against Ms Fagg's re-election.

The criticism dissipated after Ms Fagg agreed to retire next year and Seven Group said it would nominate just one director.

Mr Stokes was elected to the board but 23.4 per cent of shareholders were opposed.

Existing director Paul Rayner also attracted a big protect vote – he was re-elected but with 18 per cent of shareholders opposed.

Two new directors, Rob Sindel and Deborah O'Toole, were elected with overwhelming support.

Notably, the company’s remuneration report was approved with only a small protest vote, indicating that shareholders are supportive of the changes being adopted by new chief executive Zlatko Todorcevski.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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