15th Aug 2016 06:50
LONDON (Alliance News) - Toscafund Asset Management LLP on Monday published a response to the letter published on Friday by tool and equipment hire firm Speedy Hire PLC in the ongoing dispute between the company and its activist shareholder.
Toscafund, earlier last week, had released a letter calling on Speedy Hire Executive Chairman Jan Astrand to resign ahead of a shareholder meeting on September 9 at which Speedy shareholders will vote on whether to remove him. Toscafund, which owns 19% of Speedy, has proposed removing Astrand, arguing he had "failed to deliver" for the company.
Speedy Hire hit back on Friday, urging shareholders to vote against Astrand's removal. Speedy said the recovery plan put in place by Astrand was a reason to keep him at the helm and noted revenue is growing and costs are falling.
On Monday, however, Toscafund turned its attention to the appointment of Robert Contreras as a non-executive director on Speedy's board. It noted Astrand has a "longstanding association" with Contreras, having supported Contreras's appointment as finance director and then chief executive of UK-listed vehicle hire company Northgate PLC.
"In appointing Contreras, Jan Astrand clearly ignored good governance requirements that apply to the selection of truly independent directors," Toscafund said.
Toscafund said Speedy needs a "truly independent" non-executive chairman and David Shearer, who has been proposed by Toscafund to replace Astrand, is the man for the job.
The investor also said it does not think consolidation in the equipment hire sector is "vital", but said it would like a chairman in place who will not "ignore the substantial benefits should such an opportunity occur again", referring to the aborted merger discussions held by Speedy with rival HSS Hire Group PLC.
"Jan Astrand has now offered to revert to being a non-executive chairman next month. Toscafund does not believe this is credible. Having spent more than a year as an executive chairman, and having overseen failed merger discussions, Jan Astrand can no longer be considered as independent or non-executive in any sense of the terms," Toscafund said.
By Sam Unsted; [email protected]; @SamUAtAlliance
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