Private charity linked to Bellamy’s shake up

Kathmandu co-founder Jan Cameron is behind an attempt to shake up Bellamy’s board, the infant formula maker says.

Black Prince Private Foundation is Bellamy’s largest shareholder with a 14.5 per cent stake in the Tasmanian company.

In a response to a request for information from the baby food maker, Black Prince said it is expected to act in accordance with the wishes of a private charity of which Cameron is a director and shareholder.

Black Prince wants to remove four independent directors from the Bellamy’s board, and replace them with Cameron and Rodd Peters, who is also a director and shareholder of the Elsie Cameron Foundation charity, plus two other representatives.

Its move came at the end of December, following a massive plunge in the price of shares in Bellamy’s sparked by a warning of weaker than expected sales in its key growth market of China.

Laura McBain has since stepped down as Bellamy’s chief executive, a new chief financial officer has been appointed, and the company is reviewing its entire executive team. Bellamy’s has also altered a key manufacturing contract with Fonterra that will result in extra costs and less production, as the company works to reduce its excess inventory.

Chairman Rob Woolley has described Black Prince’s move as an unwanted distraction for the board and management, and said it is not in the best interests of all shareholders. Bellamy’s shares were down 10 cents, or 2.4 per cent, at $4.02 at 1520 AEDT, down from the $12.13 they were at on December 1 before the group’s first earnings warning.

AAP

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