25th Apr 2016 17:37
LONDON (Alliance News) - CPP Group PLC on Monday said it has decided to withdraw from proceedings seeking an interim injunction against its founder Hamish Ogston.
CPP said it has decided to withdraw from the proceedings after major shareholder Phoenix Asset Management Partners said it will withdraw its support from the board's position and intends to abstain from voting in respect of the resolutions proposed in the Requisition Notice. Phoenix owns 39.3% of CPP.
"The board continues to recommend, unanimously, that CPP shareholders vote against the resolutions proposed in the Requisition Notice," CPP said.
CPP had initially sought an injunction to restrain Ogston from "exercising or causing to be exercised any voting rights attaching to his ordinary shares in the company", to remove and replace its directors at an upcoming vote or from preventing their reappointment at any upcoming annual meeting of its shareholders.
The proposals to remove Chief Executive Stephen Callaghan, Chairman Roger Canham, and Non-Executive Directors Shaun Astley-Stone and Abhai Rajguru were first put forward by Schroders, which owns just over 10% of CPP, and are backed by Ogston, who owns 42.3%. Together, the pair hold more than half the votes.
Shares in CPP closed down 11% at 8.10 pence on Monday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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