Ebos Limited EBO

[janner]

Me thinks thy name should be Prudence Liz... :-))

[karen1]

On Masterpet: http://www.stuff.co.nz/business/indu...directors-link

[winner69]

EBO has seldom had its 'governance' questioned and this has been one of the factors why it is a respected company

Shame that this may not now be the case. This may just be noise but it does plant that seed of doubt in people minds ... don't punters hate related party things.

Somethign that Ebos needs to manage very well

[winner69]

That Masterrpet has pretty attractive margins compared to EBO's EBITDA margins eh ... good

One unknown is that the purchase price is $105m plus Masterpet debt .... wonder how much debt they have been loaded up .... could be interesting ..... maybe one day that will be disclosed

[percy]

EBO has seldom had its 'governance' questioned and this has been one of the factors why it is a respected company

Shame that this may not now be the case. This may just be noise but it does plant that seed of doubt in people minds ... don't punters hate related party things.

Somethign that Ebos needs to manage very well

Never any problems there.
No problems when Peter Merton [PHB,EBO customer ] was there.The board of EBO is very strong.As regards to Mark Stewart's Ziwi Peak I see it as positive that Stewart has that experience.
The person who really surprised me was Sarah Ottrey.She spoke at one AGM giving her backround in brand marketing.She was reponsible for BD's Henekein launch and DB's Tui branding. Very clever woman.
Peter Klaus has been there since buying into EBO before 1990,and has always supported the company.
Elizabeth Coutts is an extemly experience director.
Chairman Rick Christie ex Rangatira CEO and again a director with a wealth of experience.
Barry Wallace,who I don't know is also very experience director.

[macduffy]

From Rick Christies' comment in the article:

"Mark declared his interests as he would normally do in respect of Masterpet right from day one and as far as the board were concerned that was a matter for him to deal with and it wasn't regarded as a conflict ... I've got really nothing more to say about that. It's a different sort of a business. He's in the raw pet food business. The pet food sold by Masterpet and its subsidiaries is substantially manufactured food to dried food ingredients."

With all due respect to Rick Christie, it seems to me that there is at least a potential conflict of interest if, as the article suggests, the firm that he has an interest in, sells its raw pet food product to Masterpet. In those circumstances the approporiate action would be to not only declare the interest but also to abstain from taking part in making the decision.

[winner69]

Percy - not casting any aspersions on the Board - just saying they have had a pretty good 'governance' record up to now and need to be totally transparent with the market now this has come out.

Irrespefctive of the calming words from the company punters tend to make their own judgement eh

[percy]

From Rick Christies' comment in the article:

"Mark declared his interests as he would normally do in respect of Masterpet right from day one and as far as the board were concerned that was a matter for him to deal with and it wasn't regarded as a conflict ... I've got really nothing more to say about that. It's a different sort of a business. He's in the raw pet food business. The pet food sold by Masterpet and its subsidiaries is substantially manufactured food to dried food ingredients."

With all due respect to Rick Christie, it seems to me that there is at least a potential conflict of interest if, as the article suggests, the firm that he has an interest in, sells its raw pet food product to Masterpet. In those circumstances the approporiate action would be to not only declare the interest but also to abstain from taking part in making the decision.

I note Rick Christie said Mark declared his interests as he would do in respect of masterpet right from day one.
I would then expect Mark Stewart would have told the board of his experiences in the pet food business.Stewart is one very clever man so I would expect the board would have been enlightened by his words of wisdom.!!!!!

[steve fleming]

Hopefully this was a misquote ""He's obviously a major shareholder but this was a board decision and it did have to go to shareholders. So Mark was just another director, really."

Surely he means it did NOT have to go to shareholders?? So Mark just gave his view as a director.

Unfortunately it happens all the time that major shareholders are canvased or given the heads up prior to a significant transaction, when in reality, it should be the board acting on behalf of their shareholders making the call, then taking it to a shareholders vote if required.

But strange for a chairman to blatantly publicly acknowldege that the major shareholders get a say in the decision yet there is no shareholder vote for minority shareholders to express their views?

[percy]

[QUOTE=steve fleming;364572]

Surely he means it did NOT have to go to shareholders?? So Mark just gave his view as a director.

Agreed,after he told other members of the board he had an interest in Ziwi Peak ,who supply product to Animates.who in turn are half owned by Masrerpet.
I think it is very positive to have capable directors who have their own money invested in the business.In Mark Stewart's case he has always taken dividend reinvestment instead of cash dividends.There was a rumour when he brought in he would not sit on 10% for long and was expected to to want 20%. That has been unfounded ,however with divie reinvestment his stake has increased.
Also of interest is one of the owners/investors of Masterpet was "our old friend" Paul collins of Brierley Investments fame.