Rowe, Rowe, Rowe your boat
Rowe, AO, the chairman of former Nicholas Bolton plaything BrisConnections, is a well-known figure in the boardrooms of Australia. Among other things he is executive chairman of Rothschild Australia and chairman of UGL, as well as being a former chairman of the Queensland Investment Corporation and of ASX.
Crescent Wealth managing director Talal Yassine said Rowe had been "appointed for his experience and ability to offer high-level insight and counsel on strategic opportunities".
Based on the performance of the two listed outfits where he is chairman, CBD can think of no one better placed to give advice about investment opportunities - and pitfalls.
Brisbane toll-road operator BrisConnections has been suspended from trade for 2½ months, but units in the company last traded at 40¢ - down just 54 per cent for the year. Meanwhile, UGL shares were changing hands on Thursday at $11.09, down a modest 15.6 per cent over 12 months.
Ostrich behaviour
News of Rowe's elevation to guru status made CBD wonder what was going on with BrisConnections.
The answer? Not a lot. Investors seem to be on a road to nowhere. Trade in BrisConnections units was suspended on November 13 so the company could enter a "series of complex negotiations" with lenders.
A syndicate of banks owed about $3 billion had apparently lost patience with the lack of traffic on the road - and therefore revenue for the company. For 2½ long months BrisConnections has said not a word about the state of the negotiations, and that situation wasn't changing when CBD called.
"The board is in discussions with banks about how to go forward with the business," is all BrisConnections spokeswoman Amanda Scanlan would say.
That's no advance on the November announcement.
While the ASX likes suspended companies to regularly inform the market as to what's going on with their predicament, even if they have nothing to report, BrisConnections has chosen not to do so.
Nor has it chosen to lift the suspension, which would allow investors such as Macquarie Group, which holds 45 per cent of units, and Deutsche Bank, which holds 33 per cent, an opportunity to crystallise their loss and wipe their hands of the whole thing.
No restriction applies to debt holders, who have reportedly been flogging off their positions for as little as 35¢ in the dollar.
Orica headaches
Rock'n'roll ain't noise pollution but heavy metal sure is bad for you, as Orica has discovered. The mining services company is in trouble with residents around Botany Bay over mercury contamination at its former Port Botany site.
But it was film on the mind of the shareholder who opened up on chairman Peter Duncan over the mercury imbroglio at Thursday's annual meeting.
He asked whether there was "an end in sight" for the company to clean up the mess, saying the situation reminded him of movie classics From Here to Eternity and The NeverEnding Story.
In response, Duncan said some of the environmental issues dated back to World War II and cleaning up the mess would take time.
"They are unfortunately a part of our inheritance," he said. "I think it is going to be quite a number of years before we say that they are completely eliminated.
"I am absolutely convinced that none of them is going to be of a seriously debilitating nature."
Orica's environmental woes weren't the only issue agitating shareholders. Another unhappy shareholder called for fresh blood on the board, describing the existing lot as "faceless cigar-smoking Melbourne Club men".
The board has just one female member, the seemingly ubiquitous Nora Scheinkestel.
Palmer print
"We've since stumbled on a trademark application, submitted four months earlier in August, by [Clive] Palmer's company Mineralogy . . . registering 'World Leadership Alliance - World Economic Council'." - The AFR's Rear Window columnist (and Women's Weekly pin-up) Joe Aston, wrote on Thursday.
"Never heard of the World Leadership Alliance? Palmer is closely involved in the global powwow, which features a troughload of ex-politicians and takes in a couple of other leadership organisations. Indeed, Palmer's company, Mineralogy, registered the trademark back in July."
Got a tip?
bbutler@fairfaxmedia.com.au
Frequently Asked Questions about this Article…
Trevor Rowe, AO, has been appointed to the advisory board of Islamic funds manager Crescent Wealth. Rowe is a high-profile boardroom figure — chairman of BrisConnections and UGL, executive chairman of Rothschild Australia and a former chairman of QIC and the ASX — and Crescent Wealth’s managing director Talal Yassine said Rowe was brought on for his experience and strategic insight. For everyday investors this signals Crescent Wealth is seeking senior-level counsel as it grows its Islamic funds business.
BrisConnections was suspended from trade on November 13 so it could enter a “series of complex negotiations” with lenders. The company has owed a syndicate of banks about $3 billion and cited weak traffic and revenue on its Brisbane toll road. For unit holders the suspension removes the ability to trade freely — units last traded at 40¢ and were down about 54% for the year — and major investors like Macquarie (45% of units) and Deutsche Bank (33%) have been unable to crystallise losses while trading remains suspended.
According to the article a syndicate of banks was owed about $3 billion and had reportedly grown impatient with the revenue shortfall. The piece also notes debt holders have been selling their positions in the debt market for as little as 35¢ in the dollar, indicating substantial distress among creditors and secondary-market pressure on recoveries.
UGL shares were reported trading at about $11.09 and were down roughly 15.6% over the prior 12 months. The article highlights Rowe’s chairmanship of UGL alongside BrisConnections, so UGL’s recent share performance provides context on companies where Rowe holds leadership roles and may be of interest to investors tracking those boards.
Orica has faced community concerns over mercury contamination at its former Port Botany site. At its annual meeting, shareholders pressed chairman Peter Duncan about cleanup timelines. Duncan said some environmental issues date back to World War II, will take a number of years to resolve, and he did not expect them to be ‘seriously debilitating’ to the company — but the matter remains an ongoing investor concern.
Yes. Beyond environmental questions, at least one shareholder called for fresh blood on Orica’s board, criticizing it as being dominated by men. The article notes the board currently has just one female member, Nora Scheinkestel, highlighting shareholder focus on board composition and governance.
When a company is suspended, investors should watch for formal market updates and announcements about negotiations or restructuring. The article points out that the ASX prefers suspended companies to regularly inform the market even if there’s nothing new to report; BrisConnections has provided only limited comment that “the board is in discussions with banks,” so the lack of detail is itself a material issue investors should monitor.
The article references a report that Clive Palmer’s company Mineralogy filed a trademark application for ‘World Leadership Alliance – World Economic Council.’ It notes the trademark filing was picked up by a columnist and that Mineralogy had reportedly registered the trademark earlier, a quirky corporate footnote highlighted in the piece.
Call 1300 880 160
Start a chat
Schedule a call
