Listed UK private equity firm Electra has rejected a request from activist investor Edward Bramson to appoint three new directors to its board and conduct a strategic review.
Bramson intended to be one of the directors and nominate the other two.
Bramson also requested a mandate to lead a strategic review of the firm, but did not present any specific proposals.
Electra noted that it achieved a total share price return of 268 per cent in the ten year period to end-March, which is more than double the total return of the FTSE All-Share index. The firm’s NAV per share return for the same period reached 14 per cent, which is at the upper end of its target of 10 to 15 per cent.
The firm said, “The board of Electra actively keeps the company’s strategy under regular review, is of the opinion that the current strategy has delivered consistently superior long-term returns for all shareholders and sees no reason to deviate from this successful strategy.”
“The board of Electra has a long-standing policy of being comprised wholly of independent non-executive directors. Mr. Bramson, representing a circa 19 per cent shareholder in the Company, would not be independent.
“The company’s consistently superior performance over the long term provides clear evidence to support this policy of complete independence.”
In May this year Electra reported record investment levels and a five per cent increase in its net asset value.
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