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Bailey McCann, Opalesque New York: Shareholder Value Management AG, a Frankfurt based investment manager is calling for the ouster of Mears Group Chairman Bob Holt.
SVM has an 8.39 percent stake in the company and says that the lack of an independent chairman at the social housing company is destroying value for shareholders. The fund is backing Andy Hogarth for independent non-executive director ahead of an upcoming investor meeting.
Mears Group share price has fallen steadily this year and the company reported pre-tax losses of 10 percent in 2017.
SVM argues the removal of Mr. Holt and appointment of Mr. Hogarth will create the right environment for the company's CEO, David Miles, and his executive team to continue building the core business and improving shareholder returns.
In a statement, the fund says its call for a new stems from concerns with the company's capital allocation track record, the current board dynamics, the chairman's time commitments and the board's lack of shareholder engagement. SVM says Mr. Holt holds ten board seats, including six chairmanships, three of which are in publicly listed companies and is unable to devote sufficient time to the company.
A spokesperson for Shareholder Value Management AG said, "We believe that the chairman of the board of Mears Group has continually failed to challenge the status quo and to remedy the situation, despite deteriorating results, a stagnant share price and faded shareholder value. In ...................... To view our full article Click here
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