“[Our share price] has been impacted by the effect of COVID-19 on cross-border e-commerce into China and like all things with COVID-19, hopefully, will pass,” he said. “Then the negative drag on our results and share price will be removed.”
McPherson’s board has advised shareholders in the 48-page statement, released on Thursday, to await the completion of the operational review into the business.
However, Gallin has called on McPherson’s to provide a trading update before May and give more clarity on the performance of its recent $27 million acquisition of vitamins brand Global Therapeutics.
McPherson’s newly-minted chief executive Grant Peck said the company would wait until it had further certainty about its performance in the Chinese market before releasing any update to the market.
“We’re not one of the only ones to suggest it’s a little difficult to predict the future in that market,” he said. “I’m not sure if that’s necessarily appreciated by Gallin, I don’t know what sort of experience they have offshore.”
Mr Germinder’s bid for McPherson’s echoes a similar offer the company made for discount retailer The Reject Shop in 2018, which resulted in Kin Group more than doubling its shareholding in the business and gaining seats on the board. New management was then appointed, and the business’ performance has improved significantly since, with shares more than doubling.
Mr Cubbin suspects Kin to be attempting a similar tactic with this bid, aiming to cheaply increase its shareholding to a 15 or 20 per cent level.
McPherson’s shares closed the session on Thursday 1.4 per cent higher at $1.44.
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