Shareholder Novator wants changes to Amer Sports Executive Board

print this

The largest owner of the Finnish sports equipment firm Amer Sports, namely the British investment firm Novator - with a strong Icelandic background, is calling for changes to the Amer Board of Directors.
      Amer’s next shareholders' meeting with an already fixed agenda is on Thursday of this week, but by taking advantage of its 20% stake in Amer, Novator plans to summon a new meeting. Amer Sports is the world’s largest sports equipment manufacturer.
     
So, history is being repeated then. Already last year Novator called for and was granted a supplementary company meeting, which was held in June.
      The selected Board of Directors was believed to match largely the owners’ wishes and the owners also attested to this. But this was apparently not the case.
      On Monday one of the Novator directors, Heidar Gudjonsson, travelled to Helsinki to prepare for the Thursday meeting with a rebellious spirit.
      In his view the Amer Sports Board of Directors has ignored Novator and many other large shareholders’ contact requests and demands, and has made decisions that are questionable and against good corporate governance.
      Furthermore, the firm’s profitability has continuously been extremely poor.
      Of late, Novator has challenged practically every decision made by the Amer Sports Board.
      The USD 60 million hybrid bond that Amer resorted to issuing last month in order to strengthen the Group's capital structure was in Gudjonsson’s view too costly and clearly against the best interests of the stockholders.
     
Furthermore, Novator does not approve the Board’s two motions for the shareholders’ meeting regarding an issue of shares mandate and a mandate to buy back six million of the already severely indebted company’s own shares.
      Novator proposes the dismissal of both suggestions. Should this happen, according to Gudjonsson’s interpretation the Board would have no other choice but to resign.
      The new Board would then be elected in the supplementary company meeting.
     
Novator is careful not to publicly discuss the position of the Amer CEO Roger Talermo.
      In accordance with the corporate governance that Novator holds in such high regard, Talermo’s position is solely decided by the Board.
      On Monday Amer Sports’ stock price per share sank to EUR 5.48 in Helsinki.
      This does little to lighten the mood at Novator, which bought its 20% holding in the company for EUR 12.70 per share on average.


Previously in HS International Edition:
  Profit warning slices 16% from Amer Sports stock value (11.1.2008)
  Mysterious British billionaire acquires 10% stake in Amer Sports (6.11.2007)

See also:
  British billionaire Ashley again becomes major owner of Finnish Amer Sports (24.1.2008)

Links:
  Amer Sports

Helsingin Sanomat