A ceasefire appears to have been reached in the long-running battle for control of Australia's largest alcohol retailer Endeavour Group after its divisive chairman and an activist shareholder both stepped down from the board.
The departure of Peter Hearl as chair of the Dan Murphy's and BWS owner on Wednesday comes after a protracted campaign from billionaire pub baron Bruce Mathieson to secure his ouster.
Mr Mathieson, whose family holds a 15 per cent share in Endeavour, publicly voiced his dissatisfaction with the company's direction and share price under Mr Hearl's leadership.
His son, Bruce Mathieson Jr, announced he would step down from the board, despite securing his re-election at the group's annual general meeting in October.
At the same meeting, Mr Mathieson Sr failed to secure ally Bill Wavish a board seat and called for Mr Hearl to resign in a letter to shareholders.
Mr Mathieson Sr has cited the group's poor share price performance in his criticisms of Mr Hearl.
Endeavour shares surged 2.9 per cent to $5.39 by Wednesday afternoon but remained 35 per cent down from their high watermark in August 2022.
Myer chairman Ari Mervis will replace Mr Hearl as chair by the end of 2024, while Peter Margin will join the board as a non-executive director. Both appointments are subject to regulatory approvals.
Mr Hearl has served as Endeavour’s inaugural chairman since June 2021, when the company was spun off from Woolworths.
"I have been honoured to serve as Endeavour’s inaugural chairman, a business that proudly serves customers and communities right across Australia," he said in a statement released to the ASX.
"As Endeavour moves into its next phase post demerger and in line with orderly board succession and renewal planning, the board and I firmly believe now is the right time to commence a transition to a new chairman."
The board will continue to reserve a seat for a Bruce Mathieson Group (BMG) representative in recognition of its substantial shareholding.
"The board looks forward to working with BMG to agree on that representative, through whom the board expects to continue to benefit from the deep experience BMG brings to bear, particularly in relation to hotels," the statement read.
Bruce Mathieson Jr said he was proud to have contributed to Endeavour and Australian Leisure and Hospitality Group - the hotel chain founded by his father - for 25 years.
"I am confident that Ari and Peter will be committed directors and their skills and experience will contribute significantly to the board and our great company," he said.
"The board’s renewal sets up the Endeavour Group for strong and stable leadership to support management in driving returns for shareholders."
