Electra shareholders vote against Sherborne proposals

The vote is the latest development in the ongoing feud between Sherborne and Electra's board, with Bramson attempting to gain enough power to conduct a strategic review of the business.

Around 62% of shareholders voted against motions to appoint Bramson and Brindle, while 63% voted against the removal of Cullinan.

Following the general meeting, Electra has announced its intention to conduct a review of its its fee arrangements, capital structure and distribution policies. The process is to be overseen by the firm's chairman Roger Yates.

Electra received a requisition from activist investor Sherborne on 21 August, demanding that directors call a general meeting of the business's shareholders. Last month, when announcing the general meeting, Electra's board of directors unanimously recommended shareholders vote against the proposals.

Subsequently, Sherborne wrote to Electra shareholders on September 17, claiming a proposed strategic review of the company carried out by Sherborne would create £1bn in value. Following Sherborne's letter, Electra responded by stating the firm's claims were unsubstantiated, citing a lack of detail on how this would be achieved.

The claim was based on an analysis of a "representative" sample of the listed private equity's portfolio, Electra said in a statement, adding the sample set covered less than 30% of its current holdings.

Electra asserted its "superior and sustainable" track record, outlining its annualised return on equity of 14% over the last decade, and highlighting its consistent outperformance of the FTSE 250 Index over the last 10 years.

Electra went on to say Sherborne's strategic review would have a "deeply destabilising effect" on the company and "risks disrupting" its continued track record, as well as potentially "destroying significant shareholder value".

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• Topics
• UK / Ireland
• United Kingdom
• Electra Private Equity