Hudbay Minerals Inc.’s second-largest investor is seeking to oust the Toronto miner’s chief executive officer and replace most of its board.
Waterton Global Resource Management will nominate eight new directors at Hudbay’s upcoming annual meeting with a slate that includes former mining executive Peter Kukielski and financial services industry veteran Richard Nesbitt, according to a letter to shareholders Wednesday.
Waterton, which owns about 12 percent of Hudbay, will propose that Kukielski be named CEO of Hudbay and Nesbitt chairman. Kukielski was most recently CEO of Nevsun Resources Ltd. Nesbitt was previously the CEO of CIBC World Markets Inc., as well as the parent company of the Toronto Stock Exchange.
The two would replace Hudbay CEO Alan Hair and Chairman Alan Hibben, both of whom Waterton blames for the company’s underperformance. While shareholders vote to elect directors, appointing the CEO is a board decision.
“Hudbay suffers from a culture of entrenchment,” Isser Elishis, Waterton’s chief investment officer, said in the letter. “We believe that the company’s board must evolve in order to meaningfully hold management to account.”
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