Endeavour accuses pubs billionaire of using ‘selective’ information

“The Bruce Mathieson Group has used selective and incomplete information which has the potential to confuse shareholders as to the company’s performance,” it states.

It reinforces that the board recommends shareholders vote against the election of Mr Wavish at the annual meeting on October 31. Mr Hearl also asks that shareholders think about whether Mr Wavish would be considered an independent director, and to “reflect on this core tenet of our governance”.

He does, however, accept that the company needs to lift its performance at a time of regulatory uncertainty in the gaming industry and as the cost of capital increases after sharp rises in interest rates.

“We have achieved strong performance through our first two years as a listed company, but we know there is more to do,” he wrote.

Angus Aitken has lobbed a grenade into the stoush, telling his billionaire family and fund manager clients that Endeavour has gone from one of the best entrepreneur private businesses in the land to a “bloated and complex business that needs to be simplified to be fixed”.

​He likened the company to Bunnings and Chemist Warehouse – two powerhouses in the retailing space – but warned Endeavour is under-earning. He suggested a first move would be to sell the Pinnacle Drinks division to repay debt, saying owning wineries is “madness”.

A path to $8 to $10 a share in three years would need a new team, he said.

“If the current board and management team stay, the stock is going nowhere,” he said in his note.

Mr Aitken reminded investors that the Qantas price has imploded on the back of arrogance around its market dominance, and “arrogance never leads to outperformance”.

“We like the idea of buying EDV and helping fix it with new eyes and ears running a leaner, higher margin business,” he said, while also urging Woolworths to “get off the fence” to help drive the value of its remaining stake.

Mr Mathieson – who has owned over 1000 hotels over 40 years – is spending millions on an advertising blitz to convince shareholders that change is needed, claiming that $5.6 billion in sharemarket value has vanished since August 2022. He personally has lost about $430 million in paper wealth over the past 12 months, with the Endeavour share price trading around $6.90 a year ago and on Thursday sitting at $5.30.

Mr Mathieson told The Australian Financial Review he is here for the “long haul” and denied he is seeking to break up the company.

“People might think there’s an agenda behind it for me – which a couple of the big shareholders said – if I wanted to take more money, I wouldn’t have voted to go public. I’m there for the long haul, I didn’t want a cut-up. The only thing I want ... is for it to be run to its potential,” he said.

“I’m not just spending money to have a bit of fun. I’m doing it not only for myself, I’m doing what I think is right for the company and the shareholders.”

Mr Mathieson added that to be compared with Coles liquor business was “a joke” given the huge buying power of Endeavour.

“We are playing on the MCG every week – they’re playing out the back of Bourke. We should be running better, not worse,” he said.

Woolworths remains a large shareholder at 9.1 per cent but will not comment on whether it supports Mr Wavish’s run for the board. It is understood there have been some preliminary talks to meet with new chairman Scott Perkins, while Mr Wavish plans to meet with another big shareholder, AustralianSuper, this week.

Mr Wavish has already outlined his “fix-it” plan to shareholders for getting Endeavour back on track, set out in a 22-page slide deck sent to fund managers on Monday. It proposed a two-phase strategy beginning with a review of the Dan Murphy’s chain, which would be led by the board, in tandem with a probe of the financial accounts including a focus on costs, staffing and rostering.

The second phase is built around drafting a plan for the business’ 354 hotels, a review of Pinnacle Drinks, the strategy to buy premium wineries such as Shingleback and Cape Mentelle, and a plan for the BWS liquor chain, according to the presentation.