Samuel Terry - Woollard wins battle for seat on RuralAus board
07/03/2008
The West Australian

Former Labor MP – turned tax scheme advocate George Gear and ex-Bell Potter Securities investment banker Peter Wallace last night caved in to demands by a renegade RuralAus Investments shareholder for a seat on the board of the struggling timber plantation manager.

The backdown is a major victory for RuralAus’s major shareholder, Fred Woollard, who owns 19.9 per cent of the group, coming just hours after he requisitioned a shareholder meeting to force the sacking of Mr Gear and Mr Wallace from the board.

He also threatened to launch a partial takeover bid for an additional 16 per cent of the group to further strengthen his position as major shareholder.  The meeting will no longer go ahead.

Before the backdown Mr Woollard told WestBusiness he was frustrated with the board’s poor investment decisions, including taking a $1 million stake in the float of Gage Roads Brewing in 2006 at 40¢ a share.  The stake was now worth just $225,000 following the fall in Gage Roads’ shares to 9¢ yesterday.

Mr Gear refused to comment yesterday but the board has previously refused to give Mr Woollard a board seat.

“I’ve been deeply upset by the share price performance, by the Gage Roads investment and some of the other proposals the company has looked at,” Mr Woollard said.

“I believe the best use of this company’s cash and assets is a long-term, orderly wind-down and return of capital to shareholders – I’m not talking about liquidating the company in the short-term, but….. the company should be buying back more shares and be repaying cash to shareholders.”

WestBusiness understands the dispute dates back to a proposal earlier this year and by Mr Gear and Mr Wallace for a merger of RuralAus and the directors’ private investment company, a move which was blocked by strong resistance from Mr Woollard.

RuralAus’s directors, who collectively hold about 16 per cent of the company, also include PKF Chartered Accountants managing director Ian Olsen and agribusiness consultant Paul McKenzie.

RuralAus shares closed down 0.5¢ at 15.5¢, valuing the company at $8.82 million.

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