Shareholder Value Management Asks Mears To Remove Holt
A fund advised by Frankfurt-based value investor Shareholder Value Management AG, which holds 8.93% of Mears Group Plc’s issued share capital, has requisitioned an EGM to request the removal of the Group’s chairman, Bob Holt, and the appointment of a new, independent non-executive director (NED), Andy Hogarth. Upon the appointment of Mr. Hogarth, SVM urges the board to appoint him chairman in a timely fashion.
SVM argues that the removal of Mr. Holt and appointment of Mr. Hogarth will create the right environment for the company’s CEO, David Miles, and his executive team to continue building the core business and improving shareholder returns.
SVM has concerns which include Mears Group’s capital allocation track record, the current board dynamics, the chairman’s time commitments and the board’s lack of shareholder engagement.
A spokesperson for Shareholder Value Management AG, said:
“We believe that the chairman of the board of Mears Group has continually failed to challenge the status quo and to remedy the situation, despite deteriorating results, a stagnant share price and faded shareholder value. In our conversations with the company, it has become clear that the current chairman lacks the will to enact much needed change that only a new independent chairman can bring. It is our view that Mr. Holt has become an impediment to the effective running of the company.”
“A well-rounded board with a diverse set of skills and experience is essential to provide proper oversight of any public company. Our proposed nominee, Andy Hogarth, would bring experience in public company governance, business strategy and capital allocation. His presence and the improved corporate governance he will bring should offer vital support to Mears’ very effective CEO and executive management in improving returns to shareholders. Accordingly, SVM looks forward to remaining a stable, long-term shareholder.”