LONDON (Alliance News) - Equiniti Group PLC said Thursday its new acquisition, Boudicca, has grown at "unprecedented levels" due to a new approach to corporate governance.
Boudicca, Equiniti's proxy solicitation & corporate governance advisory business, has won 41 new clients since its acquisition in May.
Equiniti believe this represents a "growing pressure" on companies who are "feeling the need to act responsibly" by increasing shareholder engagement and institutional investors exercising responsible voting.
"Our clients are some of the largest and best-known businesses in the UK," said Paul Matthews, chief executive officer of Equinit's Boardroom business.
Equiniti said Tesco PLC and FirstGroup PLC have been among Boudicca's client wins.
According to the FTSE 250-listed company, "half" of its client wins have been related to annual general manager votes.
"The interest they have shown in Boudicca's services is both a testament to the skill and expertise of [the Boudicca] team, and an acknowledgement of the UK's changing governance landscape. With our newly established proxy solicitation and governance team in EQ US we look forward to similar success as we go into 2019."
Equiniti said its segment also seen a rise in merger & acquisitions activity - working on 18 deals worth about GBP60 billion in 2018, including Comcast Corp's takeover of Sky PLC.
The "growing number" of activist hedge funds "trying to capitalise on bumpitrage opportunities" is putting boards on "high alert". Bumpitrage involves activist investors buying shares in a corporate bid target and then agitating for a higher price.
Shares in Equiniti were up 1.4% Thursday at 216.50 pence each.
Tesco (TSCO)
Firstgroup (FGP)
