Electra Private Equity sees advances from Sherborne move up a gear

ELTA : Electra Private Equity sees advances from Sherborne move up a gear

Electra Private Equity has announced that it has received a requisition request from Sherborne Investors GP, LLC requiring Electra’s directors to call a general meeting of the Company’s shareholders. The objective is to consider resolutions that 1) Mr. Edward Bramson (of Sherborne Investment Management) be appointed as a director of the Company, 2) a Mr. Ian Brindle be appointed as a director of the Company and 3) Mr. Geoffrey Cullinan be removed as a director of the Company. Electra reports that no further resolutions or specific proposals have been provided and that it will be sending  a notice convening a general meeting to its shareholders in due course.

This development follows an announcement from Electra, on 29 July, that Electra’s chairman, Roger Yates (pictured), and fellow director Geoffrey Cullinan met with Edward Bramson on 24 July 2014. At this meeting, Mr. Bramson requested that three new directors be appointed to the Board of Electra and that he be given a mandate to lead a strategic review of the Company. Electra’s board decided to reject Mr. Bramson’s request citing that 1) Mr. Bramson would not be an independent director (Sherborne holds 19% of Electra) and 2) Electra’s long term performance record supports a policy of complete independence. Over the 10 year period to 31 March 2014, Electra’s share price total return of 268% compares favourably against the FTSE All-Share’s 129%, and is more than six times the total return for the Morningstar Private Equity Index of 39%. Electra’s board has also stated that it, “sees no reason to deviate from this successful strategy”.

As we have stated publicly before, we are puzzled that, after having held a very large stake in Electra for some time, Sherborne Investors have not yet told their fellow shareholders what their long-term plans for Electra are. Clearly, the matter is now progressing and we hope that Electra’s shareholders will now be given the opportunity to hear some detail of Sherborne’s intentions.