Tech group, Nanoco, has called a General Meeting next month, as it urges shareholders to vote against a resolution to appoint two directors to its board.
Milkwood Fund, which has 5.6% of the voting rights in the Runcorn-based company, issued a requisition notice calling for two directors to join the Nanoco board. They are Rhys Summerton, a Director of Milkwood and Andre Tonkin an Investment Analyst at the company.
Nanoco has today issued a strong statement, urging shareholders to vote against these resolutions:
“Milkwood has given no indication in the Requisition Notice as to the appropriateness of its nominees to be directors of a listed company nor as to the rationale for their appointment,” said Christopher Richards, Non-Executive Chairman of Nanoco.
“Milkwood has a clear and established recent track record of launching activist campaigns against undervalued, cash-rich listed entities, most recently unsuccessfully trying to take control of Downing Strategic Micro-Cap Investment Trust plc, a listed investment trust.
“Mr Summerton, on behalf of Milkwood, has previously in dialogue indicated to the Board his belief that there is little inherent value in the Company and his intention to convert the Company into an investment company. He has stated his intention to acquire a significant stake in the Company, reduce costs drastically and dispose of any assets at pace, retaining surplus cash rather than returning it to shareholders.
“In the absence of a clear rationale and taking into consideration Milkwood’s track record and Mr Summerton’s comments, the Board believes that the Resolutions are not aligned with the interests of all of the Company’s Shareholders and would be highly disruptive to the Board’s ability to execute its clear strategy to deliver value to Shareholders.”
Last month Nanoco announced that it would consider acquisition offers for its trading business.
