This article is from the Australian Property Journal archive
MAX Beck, the founder and non-executive chairman of Becton, is retiring. His departure comes at the time when the company recently posted a weak profit result and is performing poorly on the ASX.
Beck’s departure yesterday signals the end of a year long planned exit strategy, which started in September 2006.
When the company listed in July 2005, Beck kicked in about $70 million of his fortune, to buy 150 million shares for 50 cents a piece, representing just over 50% of interest.
More than a year later, in September 2006, Becton devised a plan to staple its securities to raise $183 million to partly payout Beck.
Before the stapling Becton’s share price had been trading at sub 50 cents, after opening at 64 cents on its first day of trade on July 08, 2005.
The stapling saw Becton consolidate four shares into one, which resulted in the company’s share price rising to around $2.40.
Eventually the $374 million company traded at a high a $5.10 in November.
But the high was short-lived, in December 2007, the share price began to fall eventually to a low of $2.30 in February 25.
Shortly after the fall, Becton’s share jumped to around $2.80 in February 29, despite the company posting a poor profit result days earlier.
For the six months to December, Becton booked a 27.2% fall in its net profit, despite recording an increase of 35% in revenue during the period.
Beck is also leaving at a time when Becton’s gearing is at record highs, which has increased to 49.5% from 24.4% in June 2007.
Total liabilities as at December 2007 was $1.26 billion compared to $552.90 million in the previous corresponding period, of which $871.80 million are current.
Meanwhile, Becton said he is retiring after 31 years and has appointed Brian Pollock as his successor.
“My retirement strategy began some 15 months ago, when I stepped back from my role as executive chairman of Becton.
“Having devoted most of my life to the company, I have missed out on far too much time with my wife Lorraine, and also missed out on being there for my four children as they grew up. I have no intention on missing out on seeing my grand kids grow up,” he added.
Jim Hazel has also been appointed to the board.
Becton’s share price closed 4% or 1 cent lower at $2.24 yesterday.
Australian Property Journal
