WHSP to vote against all WAM resolutions
Washington H. Soul Pattinson and Company (WHSP) has made it clear it intends to vote against all of the resolutions proposed by Wilson Asset Management (WAM), with Hunter Hall Global Value Limited (HHV) receiving a notice requisitioning a general meeting from entities associated with WAM.
The meeting, to be held on 6 April, would consider the removal of all three of the existing HHV directors, and the appointment of three new directors proposed by WAM.
WHSP stated six reasons why it intended to vote against all resolutions, with one reason being it believed the current HHV board had the relevant skills and experience to represent all shareholders, with current chairman of the HHV Board, Paul Jensen, demonstrating his ability to act independently for the benefit of all HHV shareholders.
“WHSP also notes that Mr Jensen was previously a director on a number of WAM boards before resigning those positions following the requisition of the HHV meeting,” the firm said in a statement to the Australian Securities Exchange (ASX).
|
It also said the current HHV board had carefully considered the proposal for a buyback as proposed by WAM and concluded the proposal was not in the best interests of all shareholders.
“WHSP’s view is that conducting a large buyback will make HHV smaller and less attractive to investors. WHSP also believes that buybacks in LICs [listed investment companies] are not beneficial to the long-term performance of the company,” the firm said.
WHSP also said there was significant demand for HHV’s ethically screened global listed investment company and said HHV should position itself for growth rather than becoming smaller through a large-scale buyback.
“WHSP believes that voting in favour of an entirely new board appointed by one shareholder carries significant risks. If the resolutions are carried, the future of HHV is unclear,” it said.
WHSP, which currently had a 69.5 per cent shareholding in HHV, urged all shareholders to vote against all of the resolutions proposed by WAM.
Recommended for you
Perpetual has seen AUM rise 6 per cent in the last quarter but the departure of a longstanding JOHCM fund manager led to outflows of $2.2 billion from his strategy.
In the latest Meet the Manager profile, Money Management speaks with Michael Skinner, founder and managing director at Blackwattle Investment Partners.
Global fixed income fund Bentham Global Opportunities has been added to several major platforms, enabling it to be accessed more easily by financial advisers.
Following yesterday’s news about First Sentier Investors closing four investment teams, a second global asset manager has announced it is closing its only dedicated Australian fund.