Controversy-hit DGL turns its back on NZX

Simon Henry’s DGL Group has decided to delist from the NZX in a move the stock exchange boss says is clearly a reaction to Henry’s abusive comments towards My Food Bag co-founder Nadia Lim.

Chemicals maker DGL announced yesterday that its shares will cease trading on the NZX at the close of business on Tuesday, June

28. It will retain a sole listing on the Australian Stock Exchange.

The company said its board believed a New Zealand-based trading platform was of “little or no value” to DGL or its shareholders, and there “is no benefit” from continuing to remain listed on NZX.

However, NZX chief executive Mark Peterson said the decision was clearly a reaction to Henry’s comments about Nadia Lim and the My Food Bag IPO.

Last month Henry referred to Lim as a “bit of Eurasian fluff ” while comparing the public float of his company with the meal kit business — then was slow to apologise.

“Simon received strong feedback locally on those comments,” Peterson said.

He said it was “disappointing to New Zealand investors that recent events have triggered DGL to take this step — especially as its board publicly noted it was undertaking an independent review of its organisational culture.”

The Australian chemicals company is 57 per cent owned by Henry, a New Zealander.

Last week Milford Asset Management — one of the country’s largest investment managers — revealed it had offloaded its shares in DGL Group in the wake of Henry’s comments. Several other investment and KiwiSaver firms, including Devon Funds and KiwiWealth, said they would shun DGL.

DGL shares plummeted from $4.15 on May 4 to reach $3.14 on May 13 as the furore was fuelled by Henry’s initial silence followed by a one-line emailed apology that was widely derided. DGL was down a further

14c yesterday to close at $3.06.