AVI requisitions Third Point Investors to address ‘entrenched trading discount’ – Asset Value Investors (AVI), which manages AVI Global, along with three other shareholders in Third Point Investors (TPIL) have requisitioned the TPIL board to consider steps and actions to address its discount, as revealed in a letter published today. The key shareholders collectively own more than 17% in TPIL’s ordinary shares and over 10% of voting rights.
They have also called for the board to propose to put in place arrangements, whereby shareholders are given the opportunity to redeem their holdings in TPIL on terms (regarding frequency and percentage of shareholding) that match as closely as possible those available to investors who hold the same class of shares in Third Point Offshore, in which TPIL has invested a majority of its assets. This proposal of this ordinary resolution will be by way of advisory vote.
AVI said it accepts that the holding of the advisory vote will not be binding on the TPIL and/or the directors but likewise, it being put to a general meeting will not contravene the provisions of the company’s Articles of Incorporation.
The resolution is aimed at establishing shareholders’ views on a solution to TPIL’s persistent and entrenched trading discount to NAV. This comes following a similar letter and requisition which we wrote about early last month, where the shareholders also expressed ‘grave concerns as to the integrity of the process of TPIL’s strategic review and its conclusions’.
Tom Treanor, executive director and head of research at AVI, said today that the group believes it is in the best interests of shareholders and the company that shareholders have an opportunity for their voices to be heard in the fully transparent fashion provided by the holding of a meeting to discuss the discount and the holding of the advisory vote. He said: ‘We believe the TPIL board should welcome such an opportunity to resolve the issues we have highlighted and allow the company to move forwards.’
AVI : AVI requisitions Third Point Investors to address ‘entrenched trading discount’