21st Dec 2015 18:16
LONDON (Alliance News) - Home shopping and education supplies company Findel PLC on Monday said shareholders have shot down the proposed appointment of Benjamin William Gardener to its board of directors, after FTSE 100 retailer Sports Direct International PLC took a 19% stake in the business and called the vote.
According to a statement issued by Findel, about 81% of shareholders which voted at Monday's meeting rejected the appointment.
Sports Direct acquired its stake in Findel in September. In a statement after the market close, Sports Direct said it had acquired the shareholding in the company on the understanding "this would be of benefit to, and welcomed by, Findel and its other major shareholders."
"Sports Direct was also of the understanding that Toscafund and Schroders, as major shareholders, had approved and were in support of Mr Gardener's appointment to the Findel board as representatives of Toscafund and Schroders had met with Mr Gardener prior to Sports Direct making such a proposal," the company added in a statement.
Sports Direct noted it would not have considered working with Findel or have proposed Gardener's appointment to the board without prior indications of support from Toscafund and Schroders, and added that the two hadn't provided a "clear public explanation" as to why they decided to vote against the appointment.
It its statement Sports Direct made a few observations in regards to Findel.
Firstly, it noted that the company not had a chief executive officer since March despite a search for a replacement by the board's independent external consultants. It also noted that a deal for its Kitbag business not yet having been agreed despite an approach, and highlighted an 8.2% fall in Findel Educations' revenue in the first half of its 2016 financial year, and a "below expectations" performance from Findel's Express Gifts business in the same period.
Sports Direct said that, in light of this, it believes "it could have worked with Findel and its board to improve its business and its share price."
Shares in Findel closed flat at 200.00 pence Monday, Whilst Sports Direct closed down 0.8% at 565.73 pence.
By Samuel Agini; [email protected]; @samuelagini and Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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