24th Apr 2018 11:02
LONDON (Alliance News) - South African Property Opportunities PLC said Tuesday that investors holding a 81% stake were prepared to vote against proposals to de-list and wind-up the firm in early May.
The company was informed that Michael Meyers - who holds a 29.9% stake in the firm - had requested the firm cancel or adjourn its May 2 meeting due to vote on the proposals to first de-list from the AIM market and second to wind-up the firm.
Meyers also informed South African Property that two other major shareholders were prepared to follow suit. As a result, Meyers explained, "both resolutions will be rejected by holders of approximately 81% of the equity".
Under the original proposal, a majority of 75% or more was need to pass the de-listing proposal and over 50% agreement for the winding-up of the firm to be passed.
The other shareholders were John McKeon who holds a 26.6% stake and Peterhouse Corporate Finance - acting for Flare Capital - which owns a further 24.9%. Meyers emphasised the three investors were not acting in concert.
All three shareholders have only built their stakes recently. Meyers and Flare Capital on April 13 and McKeon last Tuesday.
Meyers also proposed the board of South African Property resign and appoint Meyers to the board. Nominees of the two other major shareholders also should be appointed. Meyers also suggested the appointment of an independent director "if you felt that this was necessary".
The news comes after South African Property said early April it was to seek shareholder approval to voluntarily liquidate the company. It made the proposal after an unsuccessful attempt to sell its Brakpan asset in Gauteng province, South Africa.
Should the resolutions have been passed, South African Property expected its shares to be suspended from trading on the AIM market on May 2. The shares then would be cancelled on May 3.
The firm said late March it had contracted to sell the Brakpan asset for ZAR11 million, or GBP650,000. However, the company attempted to enforce this contract without success.
Shares in South African Property were 20% down at 0.60 pence on Tuesday.