Boardroom mayhem at D1 Oils as CEO steps down
In the UK, D1 Oils CEO Ben Good resigned from the troubled jatriopha developer, just 11 days after offer talks terminated for a friendly takeover of the company by Mission NewEnergy Limited.
Biofuels Digest Asia editor Joelle Brink reports:
“If there were a medal for valor in biofuels it would certainly go to the board of D1 Oils, which has now had to repel its third take-over attempt by investors intent on abandoning the company’s jatropha mission and making a quick buck.
“The first came from BP, which quickly lost patience with the time and local partnerships required for successful Jatropha plantation and wore out its welcome with the Indian government after experimental high-yielding Jatropha seedlings disappeared from a government laboratory along with a researcher who turned up a week later in a management job with D1.
“Next came South African corporate raider Brian Myerson, according to the London Evening Standard, “known for creating boardroom spats and forcing changes at Photo-Me and Blacks Leisure.” Myerson wanted to cash out D1 and invest the proceeds in Principle Energy, his own African ethanol business. After a long and bitter battle that tested the commitment of board members to the company’s original mission, Myerson was ousted and D1 resumed its jatropha mission and partnership with the Indian government.
“This latest battle began when D1 proved Myerson wrong by successfully carrying out jatropha plantation at an unprecedented scale with its partner, Indian tea giant Williamson-Magor. Then highly regarded Australian jatropha producer Mission New Energy approached the D1 board with the offer of a friendly takeover opportunity. Though he had been banned from taking part in takeover dealings for three years, Myerson nevertheless went on the attack and succeeded in blocking the Mission deal, a move that caused outrage in the D1 boardroom and among the 41% of shareholders who supported the takeover.
“Myerson’s Principle Energy also personally attacked D1 CEO Ben Good, who had guided the company to its success in jatropha plantation. “We welcome Ben Good’s departure having watched him preside over a comprehensive strategic and operational disaster at D1″ it opined in a press release. “In our view the company needs an entirely new board of directors, in particular a new chairman, able to act in the best interests of all shareholders.”
“The outraged D1 board immediately replaced Good with close colleague and COO Martin Jarvis, whom Myerson had also wanted shareholders to vote off the board along with chairman Barclay Forrest. “While the board is disappointed that it has not been able to implement a deal following an indicative offer from Mission New Energy” the board said in a statement, “it intends to continue discussions with other potential offerers as well as its work on the company’s development.”
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Category: International
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