Northern Star Resources chair rejects Elliott sale demand
Northern Star Resources (ASX:NST) chair Michael Chaney has rejected a high-profile push by activist investor Elliott Management to launch a sale process for the gold miner, despite acknowledging recent pressure over the company’s lacklustre market performance.
In a direct letter to shareholders, Chaney addressed Elliott’s criticisms regarding Northern Star’s recent share price underperformance.
While stating the board remains "happy to engage with Elliott and seriously consider constructive suggestions", Chaney firmly pushed back on the activist's headline demand for an immediate company sale, asserting that the board does "not consider that this is the right time to do so".
The rejection comes with the revelation that Northern Star's weakened market valuation has already attracted opportunistic suitors.
Chaney disclosed that the miner has been approached by several companies over the past year regarding potential corporate combinations, though discussions were abandoned as they were deemed contrary to shareholder interests.
The company confirmed it recently leveraged investment bank advice to review options for a potential asset spin-off, ultimately deciding to retain its current portfolio under regular review.
Beyond structural changes, the activist tussle is also pivoting towards governance. Elliott
Management has called for a boardroom refresh, a demand Chaney met with measured openness, stating the board would be "pleased to consider" any qualified director candidates the American hedge fund puts forward.
