Bubs Australia backs current board, to name new CEO in August (updated)

Bubs Australia

27/07/2023 03:16

(Adds background in paragraphs 3, 4 and 5, share moves in
paragraph 6)
       July 27 (Reuters) - Shareholders of Bubs Australia
 BUB.AX  on Thursday backed current head Katrina Rathie as the
infant formula maker's non-executive chair, while the company
promised to announce a new CEO in August, sending shares down
more than 15%.
    A group of dissident shareholders, controlling 5.04% of the
company, was seeking to remove all the four non-executive
directors in a campaign dubbed "Save Our Bubs" while nominating
former A2 Milk  ATM.NZ  Asia head Peter Nathan to be the new
chief. 
    Ousted ex-CEO Kristy Carr has been leading a group of
dissident investors who have been planning to vote out the
current board of directors, citing "destruction" of the company.
        In May, the company fired co-founder Carr due to her
failure to "comply with reasonable board directions".
        Shares of Bubs Australia were down 15.2% at A$0.195, as
of 0207 GMT on Thursday, to hit their lowest since early July.
        The seller of powdered milk variety for infants did not
appoint a new chief executive even as the dissident group's CEO
nomination Nathan failed to get the required votes.


    

 (Reporting by Rishav Chatterjee in Bengaluru; Editing by Sherry
Jacob-Phillips)
 ((Rishav.Chatterjee@thomsonreuters.com;))