Blackmores (ASX:BKL) share price lifts as boardroom battle heats up

Two people jump in the air in a fighting stance, indicating a battle between rival ASX shares

The Blackmores Limited (ASX: BKL) share price is edging 1.23% higher in late afternoon trade today. Shares are now changing hands at $97.73 apiece.

That’s a shade off the health supplements giant’s 52-week closing high of $99.80 on 31 August, despite no market-sensitive information out of the company.

What’s happening with Blackmores?

There’s nothing remarkable that may directly explain the gains in the Blackmores share price today.

However, Blackmores shareholders have endured a bumpy ride these past 2 months, after reports surfaced of an internal dispute between its key stakeholders.

Apparently, Blackmores’ biggest shareholder, Marcus Blackmore, is unhappy with how the board’s chairperson, Anne Templema-Jones, is guiding the company, and the decision not to appoint former Pharmacy Guild president George Tambassis to the board.

Blackmore is also reportedly seeking more diversity on the board. Additonally, he wants more inclusion from the pharmaceutical industry, given around 75% of its products are sold through Australian pharmacies.

As such, the almost 20% owner of the company is threatening to vote against the re-election of Templeman-Jones as chair.

Now it appears Blackmores is back on the offensive, with reports surfacing it has engaged proxy solicitation firm Georgeson as mediator ahead of its AGM later this month.

According to reporting from The Australian, Georgeson has been contacting Blackmores’ shareholders to request their voting intentions.

This comes alongside a discrepancy where Tambassis is unable to obtain the email addresses and phone numbers of the company’s shareholders, in order to advocate for his election.

According to Blackmores, it doesn’t store this data – only the postal addresses of its shareholders.

And the divide between the Blackmores name bearer and its chairperson is increasingly obvious when peeling back the layers.

Templeman-Jones purportedly engaged a recruitment firm to rebuild the company’s board. On the other hand, Blackmore has engaged investment banking advisory firm Rothschild for the matter.

Each corner holds a different view on where to steer the company, and this is sure to play out at the Blackmores’ AGM on 27 October.

Blackmores share price snapshot

The Blackmores share price has climbed 29% this year to date. This comes after it jumped by $22 a share in just over a week back in August.

It’s rallied 7.5% over the past month, which has bought its return in the last year to 49%.

These returns are each well ahead of the S&P/ASX 200 index (ASX: XJO)’s climb of around 19% in that time.

The post Blackmores (ASX:BKL) share price lifts as boardroom battle heats up appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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