Hudbay Minerals Inc. said Dec. 13 that shareholder Waterton Global Resource Management Inc. pulled its request for a special meeting, initially set for Feb. 28, 2019, and is now seeking to replace a majority of the company's directors with its own nominees.
The miner previously said its chairman and an independent director received a list of demands, including access to confidential company information through the appointment of a Waterton employee who would be entitled to attend all board and committee meetings, after it met with Waterton representatives on Nov. 1.
Hudbay said Waterton's demands were entirely disproportionate to its ownership interest and would give it unique rights and powers. It also added that Waterton, a relatively recent shareholder, is a mining private equity firm that competes with Hudbay for assets and may not have interests aligned with other shareholders.
Subsequently, Hudbay's chairman sent two letters to Waterton, who owns a 7% stake, inviting the latter to share the profiles of its board appointees. Waterton then announced its intent to nominate a majority slate of directors, in response to the letters.
Hudbay pointed out that it was disappointed with the shareholder's personal attacks on its leadership, its selective use of performance metrics and its revisionist history regarding its confrontational approach.