Weekend Box #106: WCK, RedX Crosses Out AIM & more
Welcome to The Weekend Box, Audley’s weekly round-up of interesting or obscure political, business and cultural news from around the world.
OUTCRY AT WCK WORKER KILLINGS
Over 30,000 Palestinians are thought to have been killed in Gaza since the Israeli Defence Force (IDF) first responded to the Hamas attacks killing 1,139 Israelis on 7th October. Gaza’s dead include 196 aid workers, so the killing of another seven this week in an air strike adds more names to a long list.
In this case, those seven workers, working for food aid provider World Central Kitchen (WCK), were British, Polish, Australian, Palestinian, and a dual US-Canadian citizen. This has prompted international condemnation from the workers’ countries of origin, including the British government, as it emerged that three of them were British: former servicemen John Chapman, 57, James Kirby, 47, and Jim Henderson, 33. All worked for UK-based security firm Solace Global as part of WCK's security team.
Six months into a brutal conflict, the people of Gaza are in a desperate state: some 1.9m of them uprooted and left in chaos, at constant risk of harm and now famine, as aid is blocked and war is waged among them. We don’t know the half of it, because access by journalists or other observers is highly limited. However, we do know that prior to this incident WCK was one of very few organisations still getting food aid in, via sea from Cyprus.
Providing aid in such a desperate and clearly dangerous environment is truly heroic, and could not be done without the bravery, skills, and judgement of seasoned security consultants like Chapman, Kirby, and Henderson. More than one Audley team member can attest to their calm, resourceful support having worked in potentially dangerous conditions under their protection. In this case, the stakes were far higher, and questions certainly need to be answered about what seems such deliberate precision targeting. For our part, we pay tribute to their courage, both moral and physical.
Image credit/nagi usano from Tokyo, Japan/Edited/License
BATTLE FOR THE MAGIC KINGDOM
The battle for the crown of the Magic Kingdom seems to be over, for now, and Disney CEO Bob Iger has emerged as victor.
After a protracted battle, Iger on Wednesday saw off an attempt by billionaire investor Nelson Peltz to gain a seat on Disney’s board. Peltz, whose investment management fund Trian has a $3b+ stake in Disney, has routinely criticised Iger’s handling of the company since he returned to serve as CEO in November 2022.
When announcing the return of Iger, who had previously served as CEO for 15 years, Disney stated he would “set the strategic direction for renewed growth.” This followed a difficult period under previous CEO Bob Chapek, which saw its share price plummet and losses from its streaming service Disney+.
This was clearly not enough for Peltz, however. Shortly before Disney’s annual shareholders meeting in January 2023, Trian issued a statement nominating Peltz for a place on the board, arguing he would help the company resolve its numerous “self-inflicted” problems. These included shares trading at an “8-year low” and underperforming the S&P 500. The 81-year-old has amassed a fortune from taking large stakes in companies to revitalise them from within, or in his words, “fixing things and… growing things,” though he rejects the term ‘activist investor.’
Peltz backed down after job and budget cuts were announced, but began his campaign anew months later, after Trian increased its stake in Disney. Peltz urged shareholders to put himself and former Disney exec Jay Rasulo on the board in place of two current directors. However, when shareholders met on Wednesday, they chose to re-elect the company’s full board.
With Peltz denied this opportunity to get in and start “fixing things,” the reins remain in Iger’s hands. What will he do with this vote of confidence? As with the battle for the board, the world will be watching.
FAYE’S FIGHT FOR SENEGAL
Less than a month ago, former tax inspector Bassirou Diomaye Faye was in prison for speaking out against the Senegalese government on social media. On Tuesday, now the leader of African Patriots of Senegal for Work, Ethics and Fraternity party (PASTEF), he was sworn in as the country’s fifth president and Africa's youngest elected head of state.
It’s a captivating turnaround for two reasons. First, PASTEF’s political struggle to victory, and second, how it may impact the wider region’s politics.
Faye stood against incumbent President Macky Sall, whose 12-year reign was blighted by the economic impact of COVID. Sall deployed an array of undemocratic tactics to hold onto power, including the arrests of PASTEF’s former leader Ousmane Sonko and Faye, who was previously its secretary-general, in 2023. The authorities also dissolved PASTEF itself. Sall’s autocratic measures led to deadly riots in which men thought to be ‘goons hired by the ruling party’ killed and injured hundreds.
Sonko and Faye were released because of an amnesty bill passed by Sall, which pardoned those involved in political violence between 2021-24. This enabled the duo to run an effective campaign with Faye as party leader and Sonko by his side, who stepped down as leader because of his convictions.
Their ‘Senegal first’ campaign saw them appear side by side to packed stadiums across the country. This contrasted starkly to the ruling party candidate, Amadou Ba, who never appeared with Sall and whose continuity message sat badly with a young population desperate for change.
The victory also owes thanks to civil society groups and journalists, who continued to publicise the actions of the government despite threats of violence and intimidation. To see this, and the triumph of a pro-democracy candidate in a West African country, may offer a glimmer of hope for a region where long-term stability and peaceful governance still seem distant prospects.
Image credit/BBC World Service on Flickr/License
REDX CROSSES OUT AIM
This week, Redx Pharma has joined a growing number of life sciences companies leaving London stock markets when it announced its intention to withdraw from London’s AIM, citing dissatisfaction with its current share valuation. Based in Cheshire, the biotech firm specialises in developing therapies for fibrotic conditions and cancer.
Redx has stated that its exit from the Alternative Investment Market, set up in 1995 to assist smaller firms floating their shares and raising capital with less cost and regulatory burden than the main London Stock Exchange, is to pursue greater financial flexibility as a privately held company.
Dr. Jane Griffiths, the chair of Redx, expressed concern that the market's valuation of the company fails to accurately represent its achievements or its future prospects. Griffiths stated that the AIM valuation does not represent the firm’s “track record or future potential and is not conducive to raising the level of capital required for our growing clinical portfolio.”
Redx’s announcement this week follows a move by other similar life sciences firms. Manchester's C4X disclosed similar intentions to leave the public market, underscoring a growing trend among pharmaceutical companies. C4X CEO Dr. Clive Dix pointed out the perceived higher valuation and growth opportunities available to private companies, driven by the interest of specialised investment funds in the private sector. “Everywhere I look the private companies are more valuable than the public ones,” he stated.
Other life sciences firms have recently snubbed the UK and decided to list the US, such as Spectral MD, an AI medtech firm which shifted to the Nasdaq after merging with Raycliff; Zura Bio, another Cheshire biotech firm that opted to list in New York over London; and Okyo Pharma, which announced last April it would move to a New York listing from London.
A WHALE OF A TIME
Indigenous leaders from New Zealand, Tahiti, and the Cook Islands have formally recognised whales as legal persons through a historic treaty.
The move is aimed at bolstering protections for whales, revered by many Indigenous Polynesian groups for their spiritual significance.
Māori conservationist Mere Takoko, leading the Hinemoana Halo Ocean Initiative, played a pivotal role in orchestrating the treaty. The initiative believes in a deep connection between restoring whale populations and revitalising Indigenous communities. “Without the whale, we actually would have never found all of these various islands of the Pacific,” says Ms. Takoko.
The treaty, known as the "declaration for the ocean," was signed by the Māori king, Tūheitia Potatau te Wherowhero VII, together with chiefs from Tahiti and the Cook Islands.
The initiative draws inspiration from New Zealand's decision in 2017 to grant personhood to the Whanganui River, meaning it is recognised as a living entity with all the rights, duties, and liabilities of a legal person.
It sets a foundation for discussions with governments across Polynesia to develop legal frameworks ensuring whale protection, addressing the threats posed by climate change, vessel collisions, and fishing gear entanglements.
The proposed legal structure includes monitoring, penalties, and even whale insurance, supported by a $100m fund. Recognising whales as legal entities allows for rights assignment, emphasising accountability for harm. This novel approach, considering a whale's environmental and economic value, encourages preventive measures by shipping companies.
The declaration is a new development in global environmental stewardship. It may yet create greater international interest in extending similar protections to the natural world.
And that’s it for this week. I hope you found something of interest that you might want to delve into further. If so, please get in touch at cwilkins@audleyadvisors.com.
For now, that’s The Weekend Box officially closed.