Geoff Wilson’s warning to HHV board
Wilson Asset Management (WAM) chairman, Geoff Wilson has given the board of the Hunter Hall Global Value Fund (HHV) until close of business Monday to respond to a demand that all shareholders be allowed to exit the company at fair value.
In a letter to the HHV board, Wilson references his "numerous conversations with your Chairman since Peter Hall's shock resignation and notes that Wilson Asset Management (International) Pty Ltd's related entities began purchasing shares in HHV on 16 July 2013 and that he (Wilson) had "sought to assist the board with strategies to close the company's discount to net tangible assets (NTA)".
"This advice has focused on corporate governance, capital management, dividend payment and shareholder engagement initiatives, which are vital to the success of listed investment companies," the letter said.
"Unfortunately, the corporate governance crisis caused by the unexpected and unprofessional resignation of Peter Hall — founder, chief executive officer, chief investment officer and portfolio manager of HHV's investment manager, Hunter Hall International Limited (HHL) — has created new problems for shareholders."
"After this major change and now that Mr Hall has established a mechanism for his departure from Hunter Hall, we believe it is incumbent on the HHV board to enable shareholders who have been loyal to Mr Hall, Hunter Hall and HHV an opportunity to depart."
The letter said it was "only fair and equitable that all HHV shareholders are given the opportunity that all other investors in Hunter Hall funds are given and that is to exit their investment at full value, NTA".
"As previously discussed, we propose this opportunity is structured as an equal access share buyback," it said.
The letter then concludes on the note that unless the HHV board decides by COB Monday, next week, to treat all HHV shareholders fairly "then we have no choice than to look to install a board that will".
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