The £1bn
Dan Loeb’s
AVI had previously published a letter in May criticising TPIL’s governance and share price discount, and sought to use the requested EGM to narrow the gap between the fund’s share price and the value of its assets.
TPIL, which listed in
But in a stock exchange announcement on Wednesday, TPIL’s board said that the proposed resolution could not go ahead, as it would “inappropriately infringe on the board’s ability and obligation to manage the Company [and] would have no legal effect”.
AVI’s proposals were previously considered in a strategic review, the board said, but were rejected for “various reasons”.
“Including principally that the Board determined such actions would, over time, meaningfully reduce the trading float and overall size of the company, which would render it significantly less attractive to investors and threaten its long-term viability.”
Billionaire activist investor
AVI has previously complained to TPIL’s board over its dual share class structure, and has been in contact with the
TPIL’s board also said in the statement that the trust’s share price is up 28 per cent on the year so far, and it had achieved a “meaningful reduction” in the discount to around 12 per cent.
This was down from 17.5 per cent in May, and the board said it believed a share exchange facility it put forward itself at the annual meeting last week would drive it down further.
The post
© City AM, source