Economy
Gay, Gray stand down
Gunns chairman John Gay has announced today that he will stand down, the Australian Financial Review reported this afternoon. Robin Gray is also stepping down.
A company spokesman was not immediately available for comment.
Gunns shares were up 1 cent, or 2 per cent, to 53 cents in recent trade.
More to come.
ABC Online: Reports Gunns directors to step down
The chairman of the troubled Tasmanian timber company Gunns, John Gay, is standing down from the position to focus on a new business to further the pulp mill.
In a highly-anticipated announcement to the stock exchange, Mr Gay said he would stand down as the Gunns chief before November to become chairman of a new company, Southern Star Corporation.
Southern Star is 51 per cent owned by Gunns and is being set up to focus on the $2.5 billion Tamar Valley pulp mill proposal and would also manage Gunns’ plantations and land.
The Tamar Valley mill project had stalled because of a failure to secure local finance, but Gunns now plans to develop it through a new company headed by a new boss from Uruguay in conjunction with foreign shareholders.
Former Liberal premier Robin Gray has also announced his retirement from the Gunns board, but says he will continue to be a director of Gunns Plantations.
Under the massive company shake-up, Gunns has put a number of its businesses up for sale, including the Tamar Valley winery and construction company.
Gunns’ Tasmanian directors have been under pressure since Gunns posted a $98 per cent half yearly loss.
…
Anti-pulp mill campaigner Geoffrey Cousins says shareholders will not accept the new set-up because Mr Gay retains his influence over the pulp mill.
The Sydney businessman says the company’s restructure does not go far enough.
“It’s just the same old sleight of hand, very bad corporate governance that Gunns have become famous for,” Mr Cousins said.
“It doesn’t really change anything. Everyone involved with this company has had enough of the present leadership.”
HERE
Share Price (and any announcements) HERE
Download statement:
Gunns update to market.pdf