GPG takes Otter helm

By Phil Boeyen, ShareChat Business News Editor

Friday 1st June 2001

Guinness Peat (NZSE: GPG) executive Mike Jeffries is to become acting chief executive at mining company Otter Gold (NZSE: OTR).

The appointment follows the resignation of Otter's managing director, Patrick Scott, who has been with the company for six years.

Mr Scott has been head of Otter since 1999 and has also been in charge of Allstate Explorations, which is majority-owned by Otter.

Allstate's main focus is a controlling interest in Tasmania's Beaconsfield Gold Mine, which it tried to sell earlier this year for $32 million to fellow gold company Goldfields. Goldfields withdrew its offer in April.

After the sale collapsed Allstate said it was still keen to divest the joint venture.

GPG found itself a major shareholder in Otter last year after the company's disappointing 2-for-5 rights issue, in which only 27% of Otter shareholders took up their entitlement.

As underwriter GPG had to stump up with the cash for another 26 million shares, more than doubling its holding from around 20% to 44%.

GPG has previously described Otter as a "difficult situation where the adverse legacies of the previous convoluted ownership structure have lingered on"

Mike Jeffries is due to take up his acting CEO position for both Otter and Allstate in the middle of June.

Comments from our readers

No comments yet