23rd Jun 2016 08:11
LONDON (Alliance News) - Industrial Multi Property Trust PLC on Thursday reiterated to its shareholders to take no action in its ongoing dispute with activist shareholder James Stocks & Co, a merchant bank and advisory firm.
James Stocks earlier this month said it had made an GBP82.1 million offer for the property portfolio of Industrial Multi Property, in line with the most recent independent valuation of the portfolio. James Stocks said the price equated to around 250.00 pence per share.
Industrial Multi Property shares were untraded on Thursday at 180.00 pence.
The offer was rejected.
James Stocks has criticised the board of Industrial Multi Property and recommended shareholders vote against the payment of fees to the company's directors at its annual general meeting, due to take place on June 29.
On Thursday, the board of Industrial Multi Property released a letter to shareholders in which it sought to clarify some of the issues around James Stocks' statements.
Industrial Multi Property said James Stocks had not made any offer to acquire Industrial Multi Property shares, but had rather bid to acquire the company's property portfolio. However, this offer "conveniently ignored" the liabilities which would arise for Industrial Multi Property on such a sale and the costs of returning this money to shareholders.
Consequently a sale of the company's portfolio at the price implied by James Stocks would have resulted in Industrial Multi Property making a cash payment to shareholders at a "substantial discount" to its net asset value.
"The board believes it is disingenuous for J Stocks to refer to a price of 250p per share in its letter when shareholders would be likely to receive an amount closer to 200p on a winding up of the company. Shareholders should also note that the share price at the close of business prior to the publication of this document amounted to 195p," Industrial Multi Property said.
In addition, Industrial Multi Property questioned why James Stocks had set strict conditions on the offer it made. Industrial Multi Property said the deal would have comprised a change of investment policy and would be a major strategic decision for the business. But it said James Stocks' offer required a response from the board in only six business days and required a binding agreement to be entered into without giving the company's shareholders the opportunity to vote on what would be an important transaction.
"Shareholders should ask why J Stocks appeared so keen to rush the board into making a quick decision without giving the company's shareholders any vote on such an important transaction," Industrial Multi Property said.
Industrial Multi Property also defended its recent performance, noting the value of its portfolio has been consistently increasing. In the three months to the end of March, the value of its portfolio grew to GBP82.1 million from GBP80.6 million at the end of December.
Industrial Multi Property added it has a clear strategy in place and is aiming to secure a refinancing by the end of 2016 which will put it in a position to be able to resume dividend payments to shareholders.
The board of Industrial Multi Property, therefore, reiterated to shareholders not to take any action and ignore any documents sent by James Stocks.
By Sam Unsted; [email protected]; @SamUAtAlliance
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