In a statement to the ASX, Hunter Hall Global Value (HHV) announced a shareholder meeting would be held in Sydney on 6 April 2017, during which shareholders would vote on whether or not to replace the board.
The meeting comes after Wilson Asset Management (WAM), a major shareholder in the LIC, lodged a requisition on 14 February to have the board replaced after their request for an equal access share buy-back at net tangible assets was rejected by the current board.
“We are calling a meeting of shareholders to replace the existing HHV board with a completely independent board that will allow all shareholders to choose between remaining invested in the company or exiting at fair value following the shock departure of Peter Hall,” Wilson Asset Management chair Geoff Wilson said in February.
In the notice issued yesterday on the ASX, the current HHV board said offering an equal access share buy-back was “not in the best interests of shareholders other than WAM” and could potentially inflict greater costs on shareholders than the current discount to net tangible assets the shares are presently trading at.
Additionally, if the board is replaced and an equal access buy-back offered, WAM could take control of the company without paying a control premium by choosing not to participate in the buy-back, HHV said.
The HHV board urged shareholders not to vote in favour of the resolutions.
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