Sherborne calls for vote on Electra board appointments

Electra stated it received a requisition from Sherborne on 21 August, demanding that directors call a general meeting of the company's shareholders. Sherborne intends to call for a shareholder vote on its demands; namely that Bramson and former Sherborne chairman Ian Brindle be appointed as directors on Electra's board, and that former Hamley's CEO Geoffrey Cullinan be removed as a director.

Electra said it would send a notice convening a general meeting to its shareholders "in due course", with no further details on a potential timeframe.

The call for a general meeting is a further move in the ongoing battle between Sherborne and the board of Electra, with Bramson's endgame to gain enough power to conduct a strategic review of the business.

Bramson initially requested a meeting with Electra chairman Roger Yates, which took place on 24 July. Bramson proposed to put himself forward as a new director and appoint two others board members of his choosing. Furthermore, Bramson expressed his intention to lead a strategic review of the company following the board appointments.

Unsurprisingly, Electra rejected Bramson's demands, arguing that its board has always been exclusively composed of independent non-executive directors. "Bramson, representing a c19% shareholder in the company, would not be independent," Electra said in a statement released on 29 July, in which it also claimed the firm's performance vindicated this strategy.

The listed private equity firm reiterated the same arguments in a statement released today in the wake of Sherborne's call for a general meeting.

Build-up
Speculation has risen in recent months over the true intentions of Sherborne with regards to its strategy of slowly building up an Electra stake. Electra's Yates himself was quoted as saying he was not aware of Sherborne pursuing a particular agenda back in May.

Sherborne first invested in Electra in late February, buying a combination of shares and swaps, which amounted to a 10.24% stake. This initial purchase caused Electra's share price to increase by 250 pence to £27.50. Sherborne raised its interest in the company on 4 March and 6 March. As of May, Sherborne had a stake of around 19% in Electra.

Bramson's interest in the listed firm came after he realised his investment in 3i in November last year, in a move that rewarded him with a 38% return.

In 2011, Bramson led a boardroom shake-up at F&C Asset Management, which saw the firm's chairman ousted and a general overhaul of the company. However, Bramson remained a passive investor when involved with 3i.

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