Board Shuffle At Cellnet Sends Shares Tumbling
The Age
Friday November 29, 2002
Mobile phone accessories distributor Cellnet has a fresh board and management team after the resignations of managing director Mel Brookman and chairman Brian Davis yesterday.
The resignations come two weeks after shareholders at the annual meeting were told the downturn in the mobile phone industry had slashed Cellnet's sales by 20 per cent in the four months to October 31.
Yesterday's surprise departures sent Cellnet shares tumbling more than 10 per cent, wiping away half their recent gains.
The shares fell nearly 50 per cent after the annual meeting to a low of 80 cents but had since climbed back to $1.13. They closed yesterday at 97 cents.
Stephen Harrison has been promoted internally to fill Mr Brookman's shoes, and Clayton Utz corporate lawyer Darryl McDonough, who worked on Cellnet's float in 1999, will assume the chairmanship.
Santo Pappalardo becomes chief operating officer and also joins the board as an executive director.
Mr Harrison said the management and board changes provided the company with a fresh focus to capitalise on market opportunities in Australia and New Zealand.
He said Cellnet was well positioned to explore distribution and fulfilment opportunities in new fields since the building of its state-of-the-art distribution facilities in Brisbane and Auckland.
"This will be a major focus of the company's growth strategy moving forward," he said.
Mr Brookman will remain as a non-executive director and will retain his shareholding.
The company said he had resigned as managing director to pursue other business opportunities.
Mr Brookman said he was delighted that the Cellnet board had appointed Mr Harrison to take over the role of managing director. -- with AAP
© 2002 The Age
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