LONDON (Alliance News) - FTSE 250-listed private equity investor Electra Private Equity PLC on Friday said it has received a requisition to hold a general meeting from activist investor Sherborne Investors, under which the investor is seeking to appoint two people to Electra's board.
Sherborne is seeking to appoint Edward Bramson, the founder of the vehicle, and Ian Brindle, a longtime associate of Bramson and the vehicle's former chairman, to the board of Electra. Sherborne has a stake of just under 30% in the company.
It is the second time Sherborne has sought board representation at Electra, having done so a year ago when it launched a campaign for Electra to make changes to improve its overall performance. Electra said that since Sherborne launched its last, unsuccessful campaign to put its representatives on Electra's board, it has held talks with Sherborne and said the latest requisition has been made after it confirmed to Sherborne that it remains unanimous in opposing any potential board changes proposed by the investor.
"The board of Electra remains convinced that the interests of all shareholders are best served by the combination of a board that is wholly non-executive and independent of any significant shareholder, together with the continuing management of the portfolio by Electra Partners on an exclusive and wholly discretionary basis," Electra said in a statement.
Electra also reproduced a letter sent to Bramson in August in which it outlined its opposition to his and Brindle's appointment to the board. Electra said it does not agree with Bramson's view that Electra Partners, the manager of Electra Private Equity, requires an "operating turnaround" either at board level or within individual portfolio companies. It also said Bramson has failed to provide any examples of how operational performance could be improved within Electra's portfolio companies.
But Sherborne hit back later in the day, publishing its letter to Electra requisitioning the meeting. Sherborne said it decided to re-engage with the board of Electra after it added significantly to its stake in the company in recent months, making it the largest shareholder in Electra Private Equity by a "significant margin".
Sherborne said Roger Yates, Electra's chairman, has drawn a "red line" over any board representation for Sherborne, "without offering any sensible explanation". Sherborne said it thinks Bramson and Brindle are well qualified to assist the board in improving the operational performance of Electra's portfolio companies.
Shares in Electra were up 0.8% to 3,267.00 pence on Friday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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