LPE in River Capital’s cross-hairs after CEO sacking

Tom RichardsonJournalist

Apr 16, 2024 – 4.05pm

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ASX-listed electricity provider LPE received an unsolicited takeover bid from River Capital just one day after it dismissed its chief executive, Damien Glanville, for selling shares to the suitor without the board’s permission.

Sunshine Coast-based LPE provides electricity services to strata-title residences, including installing and maintaining solar systems.

Furious about dismissal: Damien Glanville, former CEO of LPE.

On Tuesday, Melbourne-based investment group River Capital lobbed an 8¢ per share takeover bid for LPE at a 48 per cent premium to the last closing price, valuing the group at around $14.4 million.

In response, LPE’s board led by chairman David Jarjoura advised shareholders to take no action.

Mr Glanville sold his entire 8.2 million shareholding to River Capital on March 29 for 8¢. He claimed the board, which terminated him for “failure to comply with LPE’s security trading policy”, obstructed him from selling his stake, amid a civil war inside the business.

“I support the bid 100 per cent,” said Mr Granville on Tuesday. “The reason I got sacked was because I sold my shares to River Capital to protect the future of the company.

“The level of professionalism has slipped completely now and River can bring it back in line as people have been pushed aside for greed and stupidity. We just want to see job security and satisfaction now.”

He told the Financial Review on Monday he needed to sell his shares for family reasons, and that he had sought permission for the sale about five times, which was neither approved nor denied.

LPE’s chairman, Mr Jarjoura, could not be reached for comment. River Capital has already accumulated 19.75 per cent of the warring utility services group and is being advised by law firm Gilbert & Tobin in its attempts to seal the takeover offer, which includes a minimum 90 per cent shareholder acceptance condition.

LPE posted a $341,000 profit on revenue of $19.3 million over the six months to December 31 and forecast it is on track to returning to a sustained period of profitability.

Tom Richardson writes and comments on markets including equities, debt, crypto, software, banking, payments, and regulation. He worked in asset management at Bank of New York Mellon and is a member of the CFA Society of the UK as a holder of the Investment Management Certificate. Connect with Tom on Twitter. Email Tom at tom.richardson@afr.com