(Reuters) Electra Private Equity on Thursday said there was no reason for activist investor Edward Bramson to join its board and called on shareholders to again reject a proposed management shake-up.
The comments follow a move by Bramson and his Sherborne Investors group in September to call a vote on appointing the New York-based activist and Sherborne nominee Ian Brindle, former UK chairman of PWC, to Electra’s six-member board.
The vote is the second time Bramson will have gone to investors, citing concerns around performance, governance and its relationship with Electra Partners, the firm contracted to manage the company’s investments.
When he last did so, just 11 percent of investors backed him.
In a statement to investors ahead of a vote on Bramson’s proposals, Electra said it was continuing to deliver excellent investment returns for shareholders and as such as did not require a “turnaround” by Sherborne.
“Sherborne has been invested in Electra for 21 months, yet has singularly failed to make a case for changing its proven, highly successful model,” Electra Chairman Roger Yates said.
“Despite repeated requests to share his analysis, Mr Bramson has declined to explain how he would run the business better, offering merely a void of substance in lieu of a credible plan.”
Calling Bramson’s presence on the board potentially divisive and value destructive, Yates said the board urged shareholders to vote against the Sherborne resolutions.
Electra said it had achieved annualised returns on equity over the 10 years through March of 13 percent, within its target range of 10 percent to 15 percent.