• Activist Jeremy Raper considers spill as one option
• Mayne regularly communicates with shareholders
• Mayne CEO refers to market speculation

Minority shareholders say pressure for a board spill at Mayne Pharma is intensifying with at least one shareholder considering a campaign to require a meeting.

Activist Jeremy Raper, with a 1.5% stake, says he is “seriously considering all options, including a spill of the entire board except Jacob Ma-Weaver.”

Last month Ma-Weaver of Funicular Funds, which holds 10% of Mayne, joined the board. Ma-Weaver said he is not placed to comment. This news service reported that Funicular broadly has similar views of other shareholders about the optimal direction of Mayne.

Raper does not have the 5% required to call an EGM. He says he can form an association to call an EGM and estimates support for his position could be around 30%, excluding Funicular’s 10%.

Brett Wells, whose family owns nearly 2% in Mayne, said he has little doubt that a board spill motion would prevail were it called for. “I don’t speak for other shareholders, but dissatisfaction with this board is widespread and visceral. The clear exception is Ma-Weaver who is responsible for none of this.”

A third minority shareholder agreed pressure for a board spill is building but cautioned that unless there is a clear path to 5% support it is an uphill battle.

Raper claims he sent Mayne a letter about two weeks ago demanding among other issues two board seats and full strategic review to consider all options, including a break-up and sale. He said Mayne responded that they are happy with the board, noting they had just made a change in appointing Ma-Weaver.

Wells’ too said Mayne is aware of his position.

A Mayne spokesperson said the company “is in regular communication with its shareholders.”

This news service asked Mayne CEO Aaron Gray at the group’s results last month about shareholder disquiet. He said he would not comment on market speculation despite disquiet being publicly expressed in the lead up to the results.

Mayne trades Tuesday at AUD 3.155 per share compared to AUD 3.05 per share on 4 August, the day before Ma-Weaver’s appointment was announced.

Manoj Jain, MD at Maso Capital which is also a minority shareholder in Mayne, has previously told this news service that Mayne is “materially undervalued” and shareholders are engaged to unlock value.

Last year Treasurer Jim Chalmers blocked a AUD 7.40 per share takeover bid for Mayne by US private equity-backed Cosette on national interest grounds.

Cosette had spent months in court trying to get out of its bid on the grounds of a material adverse change in Mayne’s financial position.