AFR 24/11/16 Praemium circles Powerwrap after board ructions by...

AFR

24/11/16

Praemium circles Powerwrap after board ructions

• by
• Sarah Thompson
• Anthony Macdonald
• Joyce Moullakis

The board ructions at platform provider Powerwrap have raised a number of questions, including whether the company is in play.
Powerwrap chairman Maurice O'Shannassy and non-executive director Mitchell Hurley were not re-elected at the unlisted public company's annual general meeting.
The two men were ousted from the four-person board, after alienating several investors over decisions including removing the company's founder Nick Owen from an executive role.
Many investors who spoke at the AGM expressed support for the company's growth prospects, despite the heated board vote.

Existing director Matthew Driscoll was expected to step into the role of interim chairman.

The issues around the board have sources suggesting rival Praemium or another listed firm will make an offer for Powerwrap. Praemium already owns about 8 per cent of Powerwrap.
Powerwrap had been seeking a run at the ASX this year before delaying it until 2017.
Powerwrap has $5.3 billion on the platform on behalf of clients including Escala Partners, Koda Capital, Bennelong Wealth Partners, Korda Mentha, and PwC.

A search is already underway for new Powerwrap directors. The company is said to have approached high-profile industry figures including Helen Lorigan, Ken Matthews, and Eve Crestani, who is chairman of Mercer Superannuation and a director at Australian Unity Investment Real Estate.