Gresham House Strategic PLC - investor in smaller UK public companies - Proposes "hold and maintain" deal with current investment manager Gresham House Asset Management Ltd to ensure smooth transition to new manager Harwood Capital LLP. Says deal with current manager will last until Harwood approved as new manager by UK watchdog. Says Gresham House Asset Management has not agreed to transitional deal, having invoiced company for a GBP2.6 million performance fee earlier this week. Gresham House Asset Management wants a further fee for a hold and maintain period, but Gresham House has not agreed to this request.
In addition, company notes it receives general meeting requisition notice from Rock Nominees Ltd, the ultimate parent of Gresham House Asset Management. Rock wants immediate return of GHS cash to shareholders, complete realisation of assets and return of capital within 24 months of meeting, as well as the appointment of three non-executive directors.
GHS Interim Chair Helen Sinclair says: "The independent directors believe that a substantial proportion of shareholders wish to retain a continuing investment in this company, are supportive of the existing investing policy, and are supportive of the board's proposals as regards the future management of the company. We feel that these views should also be taken into account, although we do take note that the company's largest shareholder and a number of other shareholders are indicating that they would like the company to be run-off and capital returned to shareholders."
Current stock price: 1,800.00 pence
Year-to-date change: up 31%
By Eric Cunha; ericcunha@alliancenews.com
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