Nanoco has called for shareholders to oppose new board members.
- A recent meeting aims to block directors nominated by Milkwood Fund.
- Concerns arise over the lack of clarity in Milkwood’s intentions.
- Milkwood’s history of aggressive campaigns adds to the issue.
- Nanoco believes these changes could disrupt current strategies.
Nanoco has urged its shareholders to vote against a proposal at the upcoming general meeting that would see two directors added to its board. This motion has been put forth by Milkwood Fund, holding a 5.6% stake in the company.
The nominees in question are Rhys Summerton, who serves as a Director at Milkwood, and Andre Tonkin, an Investment Analyst. Nanoco’s board has strongly recommended against these appointments, citing a lack of transparency in the proposals. Milkwood’s requisition notice does not sufficiently justify the suitability of its candidates for a spot on the board of a public entity, according to Nanoco’s leadership.
Christopher Richards, the Non-Executive Chairman of Nanoco, has expressed concerns over Milkwood’s strategic intentions. Milkwood has a history of launching activist campaigns against undervalued, cash-rich companies. Previously, it attempted an unsuccessful takeover of Downing Strategic Micro-Cap Investment Trust plc.
Mr. Richards highlighted a conversation where Mr. Summerton, representing Milkwood, mentioned his belief in the low inherent value of Nanoco. He suggested converting Nanoco into an investment company, reducing costs, disposing of assets quickly, and retaining cash rather than distributing it to shareholders.
Nanoco’s board feels these proposals conflict with their strategy to enhance shareholder value. They argue that Milkwood’s objectives are not in the best interests of all stakeholders and could negatively impact the board’s ability to execute its current strategy effectively.
Previously, Nanoco has announced potential acquisition offers for its trading business. This adds another layer of complexity to the ongoing boardroom discussions and strategic planning.
Nanoco’s board strongly recommends opposing Milkwood’s nominees to maintain focus on current strategic goals.
