Swiss-Irish food group Aryzta has appointed Goodbody Stockbrokers as its “Irish sponsor” in succession to Davy, which has been associated with the business and its predecessor for decades. The selection of Goodbody follows the announcement last month of a board shake-up at Aryzta, in response to investor criticism.
Among other changes set out in October, Davy’s chairman Brian Davy will be retiring from his non-executive directorship on the board of Aryzta.
The group, whose stock is down 40.56 per cent in 12 months, has been battling to halt a slide in investor confidence linked to concerns about its acquisition strategy and the underlying health of its US business. The shares closed yesterday at 47.50 Swiss francs (€43.74).
In response to a query, a Goodbody spokesman confirmed its appointment as Irish sponsor. He declined to make any further comment. The appointment is akin to that of corporate broker to Aryzta, which maintains its primary listing on the Swiss stock exchange and its secondary listing on the Irish exchange.
There was no response from Aryzta to a query but Davy’s spokesman acknowledged the development. Mr Davy has been on the Aryzta board since its formation in August 2008 when the former IAWS group merged with Swiss firm Hiestand Holding. He had served on the board of IAWS as a non-executive director between 1995 and 2008.
He will be replaced on the Aryzta board by Dan Flinter, former chief of Enterprise Ireland and chairman of The Irish Times Ltd. Mr Flinter will be proposed at the annual meeting for election as a non-executive director.
Aryzta has said it will recruit a chairman to replace Denis Lucey as the group pushes to achieve a “best in class” ranking for board independence. Mr Lucey, who stands for re-election at its annual meeting in December for the last time, has been chairman of Aryzta since its formation. He had been a non-executive director of the IAWS board since 2000 and was its chairman from 2005 until the Hiestand transaction.
Shares in Aryzta have been under pressure since January, amid concern that the acquisition of a 49 per cent stake in French frozen food group Picard for €446 million was too expensive and represented a reversal of strategy.
