Revolution Beauty believes compromise with boohoo is close

(Alliance News) - Revolution Beauty Group PLC on Monday said it believed a compromise with major shareholder boohoo is close and could be reached in the coming days.

The two firms have in the past few weeks been engaged in a war of words with online fast fashion retailer boohoo, which holds just under a 27% stake in Revolution, attempting to replace the company's board.

Revolution Beauty labelled the attempt as "self-serving" and "opportunistic", and also said the timing for such changes was wrong.

Boohoo also demanded that Revolution Beauty explain why it handed out more than GBP2 million in share awards to its management team without the approval of investors.

But on Monday Revolution Beauty struck a more conciliatory tone, although there was a sting in the tail.

The firm noted that a compromise would avoid the expense, administrative burden and other detrimental consequences for the company that would result from the general meeting.

Boohoo has called another general meeting which will be held on August 7 at which resolutions to remove three members of the board - Chief Executive Bob Holt, Chief Financial Officer Elizabeth Lake and Chair Derek Zissman - will be voted on.

Boohoo has proposed the appointments of Alistair McGeorge and Neil Catto to Revolution Beauty's board, the former as executive chair and the latter as finance chief.

McGeorge, a boohoo non-executive director, is the current non-executive chair of tonic waters and mixers producer East Imperial PLC.

Catto is currently a non-executive director at indie games publisher tinyBuild Inc, and was previously chief financial officer of boohoo between 2011 and 2022.

Revolution Beauty said should a compromise not be reached then it would recommend shareholders vote against all resolutions.

It said it would also set out its views on boohoo's proposed resolutions, the general meeting, and the situation in which the company has been placed.

The firm also suggested incorrect voting recommendations had previously been published on some stockbroking platforms stating that the board was advising investors support the resolutions.

Any shareholders who have accidentally already cast votes in favour of boohoo's proposed resolutions via their online stockbroking platforms on the basis of the incorrectly presented board recommendation should change them to votes against all the proposed resolutions, the company said.

Shares in Revolution Beauty closed 5.8% lower at 30.95 pence while boohoo closed 1.8% higher at 33.69p.

By Jeremy Cutler, Alliance News reporter

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