7th Sep 2015 17:44
LONDON (Alliance News) - The Hotel Corp on Monday said it does not want to become embroiled in a "protracted war of words" in the wake of a letter sent to shareholders by Mark Jackson and Marcus Yeoman last week, as it issued a letter of its own.
Last week, Yeoman and Jackson, who collectively own a stake of around 17% in the company, requested an extraordinary general meeting, due to be held on September 16, claiming the investment strategy the board has recommended to shareholders is "not a well planned".
"Save for a proposal to change the board composition and raise additional capital, in the period that the company has engaged with Mr Yeoman, being the last eleven months, neither Mr Jackson or Mr Yeoman have presented the board with any detailed/substantive proposals regarding an acquisition or investment opportunity that was capable of being put to the company's shareholders," the company said in a letter to shareholders.
"The company has incurred significant costs in taking advice and convening the proposed EGM demanded by the Requisitioners which will considerably weaken the company's principal asset being the cash on its balance sheet and therefore ultimately reduce Shareholder value," Hotel Corp's letter said.
"The board has sourced and spent considerable time and effort considering a number of opportunities in the last twelve months and owing to a number of factors it has been unable to get the support of its significant shareholders to pursue such opportunities," Hotel Corp said.
"The current proposal has the support of Shore Capital, which holds approximately 22% of the company's issued share capital," Hotel Corp said.
By Samuel Agini; [email protected]; @samuelagini
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