LONDON (Alliance News) - Property firm Shaftesbury PLC said Tuesday a major shareholder plans on opposing three resolutions at its upcoming annual general meeting.
Shaftesbury is holding its AGM on February 8.
Samuel Tak Lee, a Hong Kong-based businessman who owns 26% of Shaftesbury, plans on voting against resolutions to grant the board authority to allot shares, and to allow them in some circumstances to do so on a non-preemptive basis.
Lee did so in its 2018 AGM. In that meeting, 70% of shareholders backed the resolutions.
Lee has stated a placing carried out in 2017 by Shaftesbury was "motivated by a desire to dilute his interest". At the time, he held a 17% stake.
Shaftesbury said "this is not true", and said Lee was invited to take part in the placing and received 98% of the shares for which he applied, and he then continued to buy shares on the market following the placing.
"Lee refers to the dilutive effect of the equity issue," said Shaftesbury.
"The placing reduced the group's EPRA net asset value per share by 1.7 pence, equating to 0.18%."
One of the key reasons for the placing, Shaftesbury said, was its acquisition of 72 Broadwick Street, which required a GBP112 million commitment.
Lee, FTSE 250 Shaftesbury continued, has said the company will not engage with him in writing, but the company said it has responded "promptly and appropriately" to numerous letters from Lee's legal team.
"The highest standards of corporate governance and behaviour are embedded in the company's culture and the day-to-day running of its business," said Shaftesbury.
"Our experienced board of executive and non-executive directors is fully aware of its fiduciary duties and seeks always to act in the best interests of all shareholders. The long-term promotion of the business for the benefit of all stakeholders, including shareholders, rather than short-term considerations, is paramount in decision-making."
"The board continues to be satisfied the placing was conducted properly in accordance with authorities provided by shareholders to the directors at the 2017 AGM and in compliance with all legal and regulatory requirements," it concluded.
The company has unanimously recommended shareholders back to resolutions. Shares were up 0.4% on Tuesday morning at 855.50 pence each.