Quintus braces for possible buyout after managing director Frank Wilson quits

Quintus boss Frank Wilson has resigned ahead of a possible move to seize control of the sandalwood grower.

Resigned: Quintis MD Frank Wilson

Embattled sandalwood grower Quintus — formerly TFS Corp — says its managing director Frank Wilson has resigned to explore an offer to potentially partner with an “unnamed international corporation” to present a “proposed change of control transaction” to the company board.

Mr Wilson has told the board he “intends on exploring this opportunity — both with the unnamed corporation and, potentially, other third parties — further and has resigned as a director with immediate effect”.

He said in a statement he had been approached in recent days by a “well-funded, credible party with a view to making an offer to Quintis” for the shares he doesn’t already own.

And if it came off, he would return as Quintus boss.

It comes after a vicious sell-off in Quintus (QIN) shares after short-selling research house Glaucus said the group is “worthless” and that it used “Ponzi-like marketing materials” to allegedly draw investors into the company.

And it also comes after Quintis has conceded its biggest sales contract is under a cloud because its core Chinese buyer has not ­requested any shipments this year amid a Beijing probe into customs evasion.

Quintus says it has not received any proposal from either Mr Wilson or the potential parties he intends on engaging with, nor any information in relation to what the potential terms and conditions may be if an acquisition proposal is submitted.

Nor was it guaranteed that an offer will ultimately be submitted.

But it has retained legal and financial advisers to assess any proposal lodged by Mr Wilson and or other parties.

“If entities associated with Mr Wilson were to make a proposal for the shares in Quintis, it would be independently assessed on whether it is in the best interests of all shareholders against the status quo or any other proposals that may be submitted to the board,” Quintis chairman Dalton Gooding said.

“Although the fundamentals of the business have not changed and remain strong, Quintis has been dealing with a number of issues at present.

“These have affected the company’s share price so the board will work quickly to establish both interim and longer term senior management arrangements.

“Fortunately we have a very experienced senior management team who are extremely capable of fulfilling the duties previously undertaken by Mr Wilson.”

In a media statement, Mr Wilson — a major shareholder of Quintis — said he was approached in recent days by a “well-funded, credible party with a view to making an offer to Quintis for the shares that Mr Wilson does not own”.

He resigned as managing director to “focus on assessing and developing this confidential approach, or any others that emerge, into a proposal as soon as practicable.”

“At this stage, the approach has been indicative and non-binding, however Mr Wilson believes that the party is serious and credible, requiring his fulltime commitment,” the statement said.

Additionally, Mr Wilson said he has personally received several approaches over the years from parties interested in Quintis, although none have progressed to a formal proposal.

“It is my intention to fully assess this confidential approach and any others, unencumbered by my duties and responsibilities as managing director,” he added.

“It is important that this approach is assessed in order to develop and present a credible proposal to the Quintis board that is attractive to, and in the best interests of, all Quintis shareholders.”

Mr Wilson added that if such a proposal is successful, he intends to resume his position with the company.