(Alliance News) - Nanoco Group PLC on Wednesday said it received a further approach from investors pushing for the removal of the company's board.
The quantum dots manufacturer said a letter and accompanying notice from Aurora Nominees Ltd and Securities Services Nominees Ltd, on behalf of holders of around 5% of the voting rights of the company, called on the firm to requisition a general meeting.
The requisition proposes the removal of the group's current directors, including its chair, chief executive officer, chief finance officer and chief technology officer with effect from the general meeting.
The action has been spearheaded by shareholder Tariq Hamoodi.
Among its concerns, the Hamoodi group had previously said Nanoco had "apparently transacted" with the minority shareholders to raise finance on terms that benefit the minority shareholders. Hamoodi has also alleged some of the statements around the "merits and settlement prospects" in the Samsung Electronics Co litigation "appear to be misleading".
The Hamoodi group said the minority shareholders seemed to be acting on information that wasn't available to other shareholders or the market more generally.
However, Nanoco said its directors have no intention of stepping down and are confident that the actions and statements over the period of the Samsung litigation were in line with its corporate governance duties, obligations and standards.
Nanoco in February had said it signed USD150 million settlement with Samsung for IP infringement. Nanoco had said it will receive the cash paid in two equal tranches, and it will retain over USD90 million in net proceeds after litigation costs.
Non-Executive Chair Christopher Richards says: "We continue to emphatically reject Mr Hamoodi's proposals to change the entirety of the board at such a key point in Nanoco's evolution."
"The board welcomes scrutiny but his selective interpretation of the past, significant factual errors, and speculative concerns take a number of events out of context to create a misleading narrative."
Earlier in June, the company unveiled plans to return between GBP33 million and GBP40 million, around 10 pence to 12p per share, to shareholders.
"No final decision has yet been taken as to the method of any such return of capital," Nanoco said at the time.
Shares in Nanoco fell 3.6% to 18.42 pence each in London on Wednesday.
By Jeremy Cutler, Alliance News reporter
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