Minority shareholders of Du Val Property Group Limited (DVPG) have voiced their concern over the ongoing statutory management of the company and the lack of engagement from the Minister for Commerce and Consumer Affairs, Andrew Bayly. The shareholders, representing a significant portion of DVPG’s investors, have requested an urgent meeting to address the situation and prevent the potential devaluation of the company, which they estimate could jeopardize $400 million.
In a follow-up letter sent to the Minister on September 10, 2024, the shareholders expressed disappointment over the lack of a response to their earlier request for a meeting. According to the letter, shareholders had asked for dialogue with the Minister to discuss removing DVPG from statutory management, which they believe is causing unnecessary financial harm. The valuation of the company, which included review advice from Calibre Partners, places DVPG at $400 million. The shareholders argue that the continued statutory management could significantly erode this value.
Concerns About Statutory Management
The shareholders state that the statutory management has already disrupted ongoing projects and has negatively impacted investor confidence. They believe that the company’s internal governance is strong enough to manage its affairs without the need for external oversight through statutory management, which is typically reserved for companies facing severe financial or governance issues.
The letter emphasizes the potential financial harm to both the company and its investors, many of whom have significant portions of their life savings tied to the firm. Despite this, the only communication received from the Minister’s office has been a generic acknowledgment, with no direct response addressing the request for an urgent meeting.
Legal Action on the Horizon?
In the absence of meaningful engagement, shareholders are now considering legal action to protect their interests. “We sought to work with the Minister in good faith to protect the value of the company, but the lack of direct communication from his office leaves us with no option but to consider legal recourse,” said Karl Lindeman, speaking on behalf of the minority shareholders.
Lindeman reiterated that shareholders are seeking to prevent further damage to DVPG’s value and ongoing projects but feel compelled to pursue legal action if their concerns continue to go unanswered.
A Call for Dialogue
The shareholders have made it clear that their preference remains to resolve the situation through dialogue and cooperation with the government. However, they stress that the risk to the company’s $400 million valuation is too great to ignore. Time, they argue, is of the essence, and further delays could result in irreversible damage to the company’s value and investor confidence.
“We are urging the Minister to engage with us immediately. Continued statutory management risks deepening financial losses that could be avoided through productive discussion,” said Lindeman. “Our goal is to safeguard our investments and the future of Du Val Property Group.”
As the shareholders await a formal response from Minister Bayly, the potential for legal action remains a key consideration if further delays continue.
