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Swan Hill - Written 9/3/2004
The board
of Raven Mount has announced that it has "entered into preliminary
discussions with various third parties regarding future strategic options
for the group". Apparently this may include an offer being made for the
company.
Swan Hill - Written 28/11/2003; Contact: Tom Bulford
(T. Bulford)
The company's board
have recommended that shareholders accept the nil-premium all share bid for
Swan Hill, or sell their shares in the market. There appeared no chance of a
rival bidder appearing or succeeding.
Swan Hill - Written 27/11/2003; Contact: Tom Bulford
(T. Bulford)
The following
is a letter sent to the press and interested parties:
Dear Sirs,
On behalf of
the UK Shareholders Association, a body that represents the interests of
private investors, I am writing to express concern at the takeover of
the Swan Hill Group by a new AIM-listed vehicle Raven Mount. As a result
private investors, many of whom hold these shares in ISA accounts for
which AIM shares are not eligible, will be forced to sell their shares.
Swan Hill has
been delivered to Raven Mount by a group of four institutional holders,
without any opportunity for the management of Swan Hill or for the other
shareholders to express a view. It seems that the institutional
investors in Swan Hill have become disillusioned with the company’s
management. So they have passed Swan Hill into the hands of a group who
have little past experience of running a house building company and have
not even put forward a business plan. And through the convertible shares
this new team will pocket 15% of any rise in the value of the company.
This seems a very generous and unnecessary incentive. I wonder how these
institutions will justify this generosity to their own investment
clients? Why not simply propose that the existing management are
replaced by others of their choosing, employed on normal remuneration
terms?
I can only
imagine the outcry if such a scheme was landed on minority shareholders
of a much large company. But although Swan Hill is small, it and its
minority shareholders are entitled to as much respect as any other
quoted company.
We would very
much like to hear the institutional shareholders, Schroders, Jupiter,
Silchester and UBS justify their action.
If any other
shareholders share our concerns we invite them to contact the UKSA,
(0970 7060600), or at
www.uksa.org.uk. |
