Scott Lawrence is joining the board as a NED. He represents the Canadian Pension Plan Investment Board and their 19.8% stake in ETO. The investment has been an awful performer for the CPPIB and it is perhaps unsurprising that they should seek to help improve the situation. At this stage the business needs a clear strategy that explains how it will achieve its objective of doubling the size of the business by 2020 and create value for shareholders. We maintain our Sell rating at this stage.
