Following Wednesday’s (April 30) approval of a $250m debt to equity conversion, ERG has reduced it’s board from 6 to 5 members and reshuffled as well, adding Tony Shepherd and Duncan Saville as new directors. The conversion reduced the existing shareholders’ ownership from 100% to 35% and gave financier Duncan Saville 26.7% of the company with the potential ownership as high as 41%.
From ERG – May 2, 2003 – The ERG Board today appointed Mr Tony Shepherd and Mr Duncan Saville as Non-Executive Directors, while Mr Sandy Murdoch, Mr Mick Bolto and Mr Greg Crew have retired from the Board. The Board elected Mr Shepherd as the Groups new Chairman.
The ERG Board now has five members with Mr Shepherd and Mr Saville joining Mr Peter Fogarty, Mr Robert Topfer and Mr David Humann who remain as Directors.
ERG’s new Chairman, Mr Shepherd, said: “It is important to acknowledge the contributions of the three Board members that have retired today. They have seen the Company through a very difficult time and handed it over with a sound restructured balance sheet. The Company has a healthy cash position, having retired $370 million of debt in the last 12 months, and a full order book of new projects.”
“We believe we have the right mix of skills on the Board for the stage ERG has now reached. The two new Directors bring experience that should complement the finance industry expertise of Rob Topfer, and the existing knowledge of the Company that is held by Peter Fogarty and David Humann.”
“The Board and management are very focused on creating sustainable profitability from the projects we currently have on hand.”
Mr Shepherd’s appointment was foreshadowed in an announcement earlier in the week. He is currently Deputy Chairman of Transfield Services Limited, and is a Director of ADI Limited and the NSW State Transit Authority. He brings to ERG impeccable experience in overseeing the management and delivery of major, long-term infrastructure projects.
Mr Saville is a chartered accountant and an experienced international company director.
ERG’s CEO, Mr Peter Fogarty, said: “We have made enormous progress this year with new projects in Sydney, Seattle, Stockholm, Washington DC and the second phase of the Rome project in Lazio. With a much stronger balance sheet following the recapitalisation, we now have a solid platform to move forward. I look forward to working with our new Board to deliver value to our shareholders. Our main focus is timely and profitable delivery of the projects we have won.”