Hunter Hall International has denied it knew founder Peter Hall intended to sell his holding in the company before Christmas, although it was aware he wanted to quit as its chief investment officer.
Trading in the fund manager's shares was halted on December 28, the first day of sharemarket trading after Christmas, as Mr Hall had informed chairman Kevin Eley on Christmas Eve he planned to resign as the chief investment officer. Only subsequently did Hunter Hall become aware Mr Hall wanted to sell his 44 per cent shareholding, the company said in a statement to the stock exchange on Thursday.
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Peter Hall resigns from Hunter Hall role
Fund manager Peter Hall confirms his resignation as chief investment officer of Hunter Hall stating personal reasons. Vision courtesy ABC News 24.
Hunter Hall has $1.1 billion in funds under management, with about $700 million held in several unlisted funds and the balance in a listed investment company, Hunter Hall Global Value.
On December 30, the company announced Mr Hall had sold a 19.9 per cent shareholding in Hunter Hall International to Washington H. Soul Pattinson Co for $1 a share, significantly less than the $3.50 the shares were trading at prior to their sharemarket suspension. Soul Pattinson has said it intends to offer $1 a share to all investors in Hunter Hall, and Mr Hall has indicated he will accept for the remainder of his shares in the absence of a higher offer.
The sale to Soul Pattinson has triggered investor concerns that the ethical investment approach of the Hunter Hall funds could be at risk, since Soul Pattinson controls New Hope Corp, which is one of the country's largest coal miners.
The Australian Financial Review's Chanticleer column on Monday reported that Mr Hall had told Mr Eley on December 24 of his intention to sell all his holding in Hunter Hall.
The stock exchange on Tuesday asked Hunter Hall when it became aware of Mr Hall's intention to sell.
"The statement [in the AFR] ... is incorrect," Hunter Hall said in its response to the stock exchange query. "Mr Hall did not tell Mr Eley of his intention to sell his shares in the company on 24 December 2016."
![Peter Hall has cited a poor investment performance following Donald Trump's US election win for his decision to quit as CIO.](/web/20170108061551im_/http://www.smh.com.au/content/dam/images/g/t/i/o/6/f/image.related.articleLeadwide.620x349.gtmdxy.png/1483597685411.jpg)
Mr Hall would not comment when contacted by BusinessDay on Thursday, however it is believed that much of the internal discussion in the early part of last week centred on the possibility of winding up the company's funds.
Hunter Hall said it became aware Mr Hall was prepared to sell his shares under certain conditions on December 29, when its shares were already in a trading halt.
![The sale to Soul Pattinson has triggered investor concerns that the ethical investment approach of the Hunter Hall funds ...](/web/20170108061551im_/http://www.smh.com.au/content/dam/images/g/m/8/b/b/n/image.related.articleLeadwide.620x349.gtmdxy.png/1483597685411.jpg)
"At the time of the resignation announcement [of Mr Hall as chief investment officer], the board was aware that there were ongoing negotiations between Mr Hall and potential buyers of a stake in [Hunter Hall]. The board did not know if a transaction would occur, when it might occur or on what terms any transaction might be agreed."
Mr Hall has cited a poor investment performance following Donald Trump's US election win for his decision to quit as the chief investment officer of the company he founded more than 20 years ago.