Elliott Investment Management LP has publicly nominated six independent candidates for the board of Northern Star Resources Ltd. Australia's largest gold miner, escalating its campaign to overhaul the company's performance and governance.
Elliott holds an economic interest representing approximately 5.6 percent of Northern Star, valued at more than A$1 billion in July—equivalent to $689 million at the time.
The activist investor first communicated its concerns to Northern Star in early June. In a June 10 letter, the miner's board acknowledged Elliott's engagement, agreed that the board should be strengthened and offered to consider Elliott-proposed director candidates.
Despite that opening, subsequent talks over specific candidates broke down. Elliott's public nomination follows the failure of those private discussions.
Elliott said in its letter to the board that Northern Star requires a substantially strengthened board to support its incoming chief executive and oversee a comprehensive strategic and operational review. The firm cited multiple years of execution and governance failures at the company.
The six nominees would bring experience across operations, finance, governance and technical disciplines. Elliott said the individuals would help restore market confidence in the company.
Northern Star recently named Suresh Vadnagra as its next CEO and appointed a new chair.
Elliott has added more than 150 directors to company boards over the past 15 years, with nearly all of those appointments reached by agreement rather than shareholder vote.
By going public, Elliott aims to involve all shareholders directly in the consideration of its proposed directors. The firm said any directors appointed would represent all of Northern Star's shareholders, not Elliott alone.
The public nomination sets up either a negotiated settlement with Northern Star's existing board or a shareholder vote on the proposed directors.
