Bubs distracted by ‘creating negative headlines’, backers of coup say

afr.com:

Peter Nathan, the former a2 Milk Company executive at the centre of a bid to unseat Bubs Australia’s management, says the infant formula group’s board is distracted with “creating negative headlines and legal disputes”.

In an escalation of the feud which has pitted the past and present management of the ASX-listed company against each other, Mr Nathan told shareholders in a letter on Thursday that Bubs’ board “simply does not have that deep industry experience or track record in building commercial success and managing growth companies in the complex… sector”.

Peter Nathan could be the next chief executive of Bubs Australia. Eamon Gallagher

Bubs has a market capitalisation of only $200 million, but has been touted as a contender to become the next major agribusiness originating in Australia. It exports infant formula to two lucrative markets, China and the United States. In the latter, it is one of only a handful of companies allowed to import products in what has traditionally been a tightly held market.

But the company’s share price has slid dramatically in the past four years, down from highs of $1.39 in early 2019 to just 26¢ on Thursday. Part of the problem has been sales in China, which have been lower than expected. Those problems and a dispute about the right strategy in the key market led to the exit from the business earlier this year of Kristy Carr and Dennis Lin, who founded the baby formula group in 2005.

Ms Carr and Mr Lin are now behind a push to spill the Bubs board, and propose to install Mr Nathan as the company’s chief executive. A shareholder vote is scheduled for July 27. Ahead of the meeting, Mr Nathan and two other businessmen nominating for the board – former SG Warburg banker James Jackson and