Andrew Price has finally joined the board of struggling paper merchant PaperlinX, as a non-executive director, five months after failing to oust the company’s chairman and gain a seat at the board table.
Price sought to oust Harry Boon as chairman in a hostile move in March, but PaperlinX shareholders endorsed Boon by a narrow margin. Price held about 30 million shares in the company at the time.
Since then there has clearly been some rapprochement, Boon now says “In the period since the EGM in March, Andrew and I have had discussions about his potential contribution to returning the business to profitability. Following the recent completion of the Strategic Review, and our announcements of the sale of assets and the repayment and restructuring of some debt, the time is now right for Andrew to join the Board in the next phase of implementing the ongoing restructure program.”
Boon says “Andrew has 30 years’ experience in the paper, print and supply chain fulfilment industries. He established Stream Solutions which provided the Australian print industry with an internet-based order fulfilment capability to enhance supply chain efficiencies, and brings the perspective of a print buyer who understands the changing demands of the paper industry.”
Price has spent a number of weeks based in the UK reviewing the company’s operations in Europe and speaking with customers. He held a number of presentations with shareholders in May, discussing the direction of the company.
He says, “I am pleased to be joining the Board. I look forward to making a significant contribution to the current restructuring of the scaled-down business which should lead to a return to profitability through lower costs, more efficient order to fulfilment processes and a diversified product range.”
PaperlinX shares jumped 20 per cent in early morning trade to 6¢ a share on the back of Price’s appointment, after reaching a record low of 4c a share in July.
The company is currently looking for a new CEO, Toby Marchant ended his four year stint in the role last month. A 15 year veteran with the paper company, Marchant has presided over a disastrous share price collapse during his tenure, with more than 90 per cent being wiped of the company’s value since his appointment, with shares down from 43.5c to 4c.