DGL continues downward slide
DGL shares continued their slump as one of the chemical company’s most significant customers joins the chorus of concern over comments executive director Simon Henrymade about celebrity chef Nadia Lim.
Shares in DGL were down 6.7% to $3.06 in mid-afternoon trading on the NZX yesterday, making them the biggest decliner on the market.
Henry has been widely panned after he called Lim, who is a co-founder and brand ambassador for meal kit company My Food Bag ‘‘a little bit of Eurasian fluff’’ who showed cleavage in the company’s prospectus to sell its shares. My Food Bag listed at about the same time as DGL last year.
DGL has had $304 million wiped off its market value over the last four trading days in the wake of Henry’s comments, which have been labelled racist and sexist, and prompted fund managers to blacklist his stock. Prime Minister Jacinda Ardern also weighed in, calling the comments ‘‘insulting to all women’’.
DGL’s board said it has ‘‘conveyed its deep disappointment’’ to Henry following the remarks, and considers the comments made ‘‘completely inappropriate, unacceptable and offensive.’’
Henry has apologised to his staff via email for his ‘‘disparaging remarks’’ about Lim, acknowledging the language he used to describe her was ‘‘unacceptable’’. It is unclear if Henry has apologised to Lim. Melbournebased Ixom, which became a customer of DGL in January 2000, shortly after Henry formed the company in July 1999, said it has raised ‘‘serious concern’’ about Henry’s conduct with the DGL board. Ixom, a water treatment and chemical distribution company, was named as a marquee customer in DGL’s prospectus.
Such customers are highly influential to a business with a huge impact on the growth of a firm.
An Ixom spokesperson said the company was aware of the comments made by Henry and shares the view of the DGL board that they are inappropriate, unacceptable and offensive.
‘‘Ixom is communicating its serious concern about Mr Henry’s conduct to the DGL board and is seeking further information from the board about DGL and Mr Henry’s response,’’ the spokesperson said in a statement.