LONDON (Alliance News) - Activist investor Edward Bramson on Thursday won his battle for a seat on the board of London-listed Electra Private Equity PLC, with the result of a key shareholder vote prompting Roger Yates to quit as the private equity investment trust's chairman.
The public row between the activist and the trust had escalated in the weeks leading up to the shareholder vote, with the rhetoric ranging from Sherborne's accusation that Electra's duties and levels of oversight as a public company were "lacking", to Electra's condemnation of Sherborne's claims as being "ill-judged, ill-informed and ill-founded".
Sherborne's proposals, which also see the appointment of Ian Brindle, the former chairman of Sherborne Investors (Guernsey) B Ltd, to the trust's board, were backed by about 54% of the votes cast at the meeting. Electra Private Equity is managed by Electra Partners, a mid-market private equity fund manager.
Both board appointments have been duly made in a blow to Electra's recommendation prior to the meeting that shareholders should vote against the activist's proposals. A strategic review will follow.
"The new directors are grateful for the support shown by shareholders and look forward to working together with their board colleagues in undertaking a strategic review to consider all options in order to maximise long-term value for all shareholders," Sherborne Investors (Guernsey) B said in a statement.
It was a case of "if at first you don't succeed, try, try again" for Bramson, whose previous effort to take a place on the private equity trust's board failed in October 2014.
Sherborne has since gone about building its stake in the trust to 30.68%, when including convertible bond holdings, from about 20% just prior to the first shareholder vote, solidifying the activist's position as Electra's biggest shareholder.
Yates said the vote showed that a "substantial number" of shareholder voted in favour of the trust's recommendation, and that he wants to "draw a line" under the disagreements with Bramson about the composition of the board.
"I believe that to achieve this, a change in the chairmanship is an important element and, therefore, I have decided to resign from the board with immediate effect. I am very grateful for the support that I have had, particularly from my board colleagues, and I wish Electra continuing success," Yates said in a statement.
Kate Barker, Electra's senior independent director, will lead the search for a new non-executive director, with a view to the successor becoming the independent chairman of the private equity trust.
"It was with considerable regret that we accepted Roger Yates' resignation today. I would like to express our sincere thanks for his leadership and significant contributions to Electra during his tenure," Barker said.
Barker, who was named as Yates' immediate successor, said the trust will "move swiftly" to recruit a new chairman.
"In the meantime my board colleagues, including Mr Bramson and Mr Brindle, and I will seek to serve the best interests of all shareholders," Barker said.
Roger Perkin, a board member at Electra since 2009, will replace Barker as senior independent director.
Shares in Electra Private Equity were down 0.5% at 3,578.00 pence on Thursday afternoon.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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