Intrigue between Hudbay and its second largest investor is heating up ahead of the company’s annual and special shareholders meeting this week.
The candidate suggested by Waterton Global Resource Management for Hudbay’s board who was approved by Hudbay has stepped aside, just days ahead of the company’s shareholders meeting on May 7.
Hudbay planned to increase its board of directors from 10 to 11, naming three members to sit as independents and replacing two departing directors. One of the nominees put forward by Waterton, Michael Anglin, was slated to be one of the three new members. According to information from Hudbay, Anglin withdrew his name from the slate and chose to join a different company’s board instead.
Anglin’s departure will mean Hudbay will instead keep its board to 10 members next month, opening up an 11th spot if a suitable director is found at a later date.
Anglin was one of a slate of potential directors proposed by Waterton in January. Both Hudbay and Waterton had agreed on Anglin’s qualifications. Hudbay endorsed Anglin on April 5 for the company’s board, with Waterton’s approval following on April 15. Anglin’s withdrawal was announced on April 24.
“The company is therefore surprised by Waterton’s sudden withdrawal of one of its director nominees, as board nominations generally involve a rigorous process aimed at ensuring, among other things, that nominees will be available to serve if elected,” read a news release from Hudbay.
“In any event, Hudbay is disappointed that Mr. Anglin has chosen to pursue a different opportunity but respects his decision and wishes him well.”
Two new faces are included in the 10 director-nominees for Hudbay’s board. One nominee, Richard Howes, has been nominated by Hudbay. The other, David Smith, was nominated by Waterton.
Howes is the president and CEO of mining company Dundee Precious Metals Inc., a Toronto-based company that purchases and develops precious metal properties around the world. Dundee operates projects in Canada, Bulgaria, Namibia and Serbia.
Smith is the former executive vice-president and chief financial officer of Finning International Inc., the world’s largest dealer in Caterpillar heavy-duty machinery.
Waterton had announced a slate of eight candidates, including a potential new president and CEO and chairman of Hudbay, earlier this year. Hudbay released a letter to shareholders April 25 asking them to back the company’s slate of 10 candidates, including president and CEO Alan Hair, chairman Alan Hibben, Howes, Smith and directors Kenneth Stowe, Sarah Kavanagh, Igor Gonzales, Carin Knickel, Carol Banducci and Colin Osborne. Directors W. Warren Holmes and Alan Lenczner will be stepping down from the board, with Howes and Smith in position to take their seats.
