With the annual general meeting (AGM) season in full swing, there are likely to be several conflicts between companies and their shareholders.
Among them is the bubbling row over the future of The Hut Group (THG), with pressure mounting on the online beauty and nutrition company to dump its chairman.
Kelso Group had led calls for shareholders to vote against the re-election of Charles Allen, the former chief executive of Compass Group (down 1.5 per cent, or 33p, to 2,207p) and ITV (down 1.1 per cent, or 0.85p, to 78.2p) – at the THG Annual General Meeting on 24 June.
But the activist investor’s demand has been backed by Dutch investment firm OVMK, which owns a stake close to 2 percent.
Both shareholders have called for the dissolution of THG, arguing that management should spin off its beauty, nutrition and e-commerce arms into separate companies.
Investor discontent: Pressure is mounting on online beauty and nutrition company The Hut Group to dump its chairman and spin off its beauty, nutrition and e-commerce divisions.
THG listed at 500 pence per share in September 2020, valuing the business at £5.4 billion.
Kelso believes the value of the three divisions is significantly greater than the £928m the company is currently worth.
Last week, THG founder Matt Molding increased his stake in Kelso Group for the third time this year.
The shares rose 0.6 per cent, or 0.45p, to 70.25p. Kelso Group was unchanged at 3.25p.
The FTSE 100 fell 0.2 per cent, or 16.89 points, to 8,228.48 and the FTSE 250 fell 0.5 per cent, or 109.33 points, to 20,446.04.
Digital advertising group Brave Bison has abandoned its acquisition of Mission Group.
The suitor, who runs the Social Chain agency started by Dragons’ Den star Steven Bartlett, criticized his rival for failing to engage in “constructive dialogue” and extending the offer deadline.
Stock Market Watch – Clontarf Energy
Shares in Clontarf Energy rose 83.9 per cent, or 0.01p, to 0.03p after it ramped up its lithium business in Bolivia.
The company said the EU wants to help the South American nation, which holds more than half of the world’s economic lithium resources, become an exporter.
The update came alongside the company’s annual results, which showed its losses narrowed to £870,000 last year, down from £4.8m in 2022.
Last week, Mission Group rejected Brave Bison’s improved offer of £32.3m (up from an earlier proposal of £27m) and yesterday insisted it was “confident in its independent prospects”.
Brave Bison shares fell 1 per cent, or 0.03 pence, to 2.43 pence and Mission Group fell 11.1 per cent, or 3 pence, to 24 pence.
FTSE 100 Ashtead shares barely moved in the first session since reports emerged over the weekend that the equipment rental giant is considering a move into New York stocks.
The £24bn group is in the early stages of exploring a shift of its listing from London to Wall Street, the Sunday Telegraph reported.
An Ashtead spokesperson said the company “regularly reviews its capital structure, including its domicile, recognizing the fact that 90 percent of its business is in the United States.” The stock rose 1.5 per cent, or 84 pence, to 5,642 pence.
Chemring rose 0.3 per cent, or 1p, to 385p after the defense group won a £65m order for explosives from Northrop Grumman.
Aviva fell after JP Morgan downgraded its rating. Shares in the insurer lost 1.7 per cent, or 7.9 pence, to 470 pence.
But Just Group turned a profit after two broker upgrades.
One came from JP Morgan, while Peel Hunt believes the shares are undervalued and should rise in the medium term. Shares added 2.6 per cent, or 2.6p, to 103.6p.