News Column

Electra Private Equity Rejects Major Investor Request To Join Board

July 29, 2014

Samuel Agini

LONDON (Alliance News) - Electra Private Equity PLC Tuesday said it has turned down a request by Sherborne Investors Management'sEdward Bramson to be appointed to its board and to be given the mandate to lead a strategic review.

Electra said that it rejected Bramsom's requests after a meeting between Chairman Roger Yates and Bramson, who through Sherborne has built up a 19% stake in the private equity company. The meeting also was attended by Electra Non-Executive Director Geoffrey Cullinan. The meeting came at Bramson's request, according to Electra, which also said that Bramson made no specific proposals at the meeting.

Electra noted Tuesday that over the ten years to the end of March 2014 it has delivered a share price total return of 268%, more than double the total return of the FTSE All-Share and more than six times the total return for the Morningstar Private Equity Index.

"The board of Electra actively keeps the company's strategy under regular review, is of the opinion that the current strategy has delivered consistently superior long-term returns for all shareholders, and sees no reason to deviate from this successful strategy," Electra said in a statement.

According to Electra, Bramson also wanted to nominate two as-yet-unidentified directors to the board.

Appointing Bramson and directors nominated by him would be at odds with its policy of having a board comprised entirely of independent non-executive directors, due to the fact that he represents a shareholder with a 19% stake in the company.

"The board has always listened, and will continue to listen, to the views of shareholders consistent with enhancing long-term shareholder value. The board believes that maintaining an open dialogue with shareholders and a wholly independent board structure best enables the board to consider the interests of all shareholders without undue influence from any quarter," Electra said.

Electra Private Equity shares were Tuesday late morning off 0.3% at 2,641.87 pence.

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Source: Alliance News

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