10th Aug 2016 07:29
LONDON (Alliance News) - Investment firm Toscafund Asset Management LLP on Monday urged Speedy Hire Executive Chairman Jan Astrand to resign ahead of the company's general meeting on September 9 to save "both time and expense".
Last month, tool and equipment hire group Speedy Hire said it had received a requisition for a general meeting from Toscafund, which owns a 19% stake in the business, following which Toscafund issued a statement calling for the removal of Jan Astrand and the appointment of David Shearer.
Shearer was the chairman of infrastructure and business services company Mouchel until its acquisition by UK-listed Kier Group PLC.
Since that date, a general meeting has been called and is expected to take place on or before September 9. However, Toscafund on Wednesday said it is in the best interests of shareholders is Astrand steps down with immediate effect.
In an open letter to Astrand, Toscafund said the chairman had "failed to deliver" and does not "have the appropriate track record or attitude to oversee the company's turnaround". Shares in the company have fallen by 29% since July 2015 when Astrand was appointed to the position, Toscafund said.
Toscafund pointed to Astrand having "inexplicably halted without consultation with the shareholders" potential merger discussions with peer HSS Hire Group PLC following "prolonged talks".
The investment firm also signalled that the executive chairman role was incompatible with the UK Corporate Governance Code as Speedy Hire already has an effective chief executive.
Toscafund urged its fellow shareholders to remove Astrand from his position if he does not step down immediately.
Shares in Speedy Hire were untraded on Wednesday, having last traded at 34.50p pence.
By Hannah Boland; [email protected]; @Hannaheboland
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